Demonetisation Continues To Weigh On Marico Sales In Third Quarter
Net profit of Marico fell nearly 7 percent in the October-December quarter.
Marico Ltd. registered a 6.8 percent fall in net profit after the fast moving consumer goods company was "severly" impacted by the demonetisation of old Rs 1,000 and Rs 500 notes in November last year.
Net profit fell to Rs 191.6 crore from Rs 205.7 crore in the third quarter, according to the company's filing on the stock exchanges. The fall can be attributed to the 4 percent drop in Marico's business volumes in India.
Total income fell 7.4 percent to Rs 1,416.7 crore from Rs 1,530.3 crore on a yearly basis. Other income stood at Rs 23.3 crore by the end of the quarter.
Total expenses, however, reduced marginally to 211.8 crore from Rs 222.4 crore.
Earnings before interest, tax, depreciation and amortisation fell 6.1 percent to Rs 272.4 crore. EBITDA margin however, rose to 19.22 percent from 18.94 percent.
Marico is the owner of common Indian brands such as Parachute and Saffola Edible Oils.
Other Highlights
- Parachute portfolio in India declined by 1 percent on a year-on-year basis. The company however, expects inflation led growth to return from the first quarter of financial year 2017-18.
- Saffola Edible Oils portfolio grew by 6 percent, skewed towards urban markets.
- Sale of value added hair oils declined 12 percent on due to demonetisation.
- International volumes grew by 2 percent in constant currency terms.
