Mumbai: Homegrown fast-moving consumer goods major Marico Ltd on Thursday posted a 21.6% increase in first-quarter net profit to ₹315 crore, led by a stable volume growth in the domestic market. The company, which sells Parachute hair oil and Safola edible oil brand among others, had posted a profit of ₹259 crore a year ago, the company said a filing to the BSE.
Revenue from operations during Q1 stood at ₹2,166 crore, up 6.8%, against the year-ago period. The company attributed the growth to “an underlying domestic volume growth of 6% and constant currency growth of 7% in the international business."
“The company delivered strong earnings growth on the back of resilient volume growth, amidst moderation in the overall demand environment in the domestic market," Marico said in the statement.
Marico’s domestic business posted a turnover of ₹1,731 crore, a growth of 6%, against a year ago, led entirely by volumes, the Mumbai-based firm said.
“As we hope for a recovery in the overall sentiment towards the second half of the year, we will continue to push for volume driven growth and market share gains. After being constrained during the last two years, margins should see an uptick this year despite higher investments required to support our core franchises, as well as fuel the new engines of growth," said Saugata Gupta, managing director and chief executive officer (CEO), Marico Ltd.
The company expects to achieve a target of 8-10% volume growth and healthy market share gains in the India business in the coming months.