NEW DELHI: Mumbai-based Marico Ltd on Tuesday posted a 12.4% jump in third-quarter consolidated net profit to ₹251 crore burdened by higher tax expenses, the company said in a filing to the stock exchange on Feb 05.
In the same quarter last year, the company posted a net profit of ₹223 crore.
Consolidated revenue from operations for the quarter stood at ₹1,861 crore up 15% from the year ago period. During the quarter the company took price hikes in its core portfolio to mitigate the impact of higher input costs.
Domestic volume growth for the maker of Parachute hair oil and Saffola cooking oil stood at 5% for the quarter ended Dec, 31, 2018.
However, lower prices of copra or dried coconut during the quarter, led to a gross margin expansion of 230 basis points. EBITDA or earnings before interest, tax, depreciation and amortization for the quarter was up 16% to ₹349 crore.
The company’s India business—that accounts for 78% of Marico’s turnover—recorded a 13% jump in revenue at ₹1,449 crores.
Marico’s international business, on the other hand, grew 11% to ₹412 crore. Here the company upped advertising and promotional spends during the quarter. Revenue from Bangladesh that accounts for 45% of the company’s international business grew 16% during the quarter.
The company’s flagship product Parachute Rigids (hair oil) posted 9% volume growth during the quarter, despite a high base. “The portfolio grew 19% in value terms owing to the price hike taken at the beginning of the calendar year," the company said in a statement.
Its portfolio of Saffola edible oils grew 2% in volume during the quarter. “The franchise appears to be responding to the focused efforts taken to revitalize the super-premium segment of edible oils," the company said.
“We have further consolidated the core portfolio in India and have now stabilized the international businesses," Saugata Gupta, MD & CEO said in a statement.
For FY19 and beyond, “the company retains a target of 8% to 10% volume growth and healthy market share gains in the India business," Marico said in earnings statement.