Marico Q2 Results: Profit Up 20%, Beats Estimates

Marico Ltd. posted a 20% rise in its consolidated net profit in the second quarter of the current financial year, beating analysts' estimates.

The fast-moving consumer goods firm posted a profit of Rs 433 crore in the quarter ended September as compared to Rs 360 crore in the same period last year, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had a consensus estimate of Rs 389 crore.

Revenue grew 8% to Rs 2,664 crore in the July–September period in comparison to Rs 2,476 crore in the year-ago period. Analysts tracked by Bloomberg had a consensus estimate of Rs 2,684 crore.

Marico's earnings before interest, taxes, depreciation and amortisation rose 5% to Rs 522 crore in the second quarter from Rs 497 crore in the same quarter last fiscal. Its margin narrowed 50 basis points to 19.6% from 20.1% in the year-ago period.

Marico Q2 FY25 Earnings Highlights (Consolidated, YoY)

• Revenue up 8% to Rs 2,664 crore versus Rs 2,476 crore.

• Ebitda up 5% to Rs 522 crore versus Rs 497 crore.

• Ebitda margin at 19.6% versus 20.1%.

• Net profit up 20% to Rs 433 crore versus Rs 360 crore.

Marico acquired the remaining 40% stake in Apcos Naturals Pvt. during the quarter ended Sept. 30 from its founders/directors and other shareholders. Post-acquisition, Apcos Naturals will become a wholly owned subsidiary of the company.

Shares of Marico closed 0.76% lower at Rs 629.15 apiece on the National Stock Exchange, compared to a 0.52% advance in the benchmark Nifty 50. The stock has risen 18.22% in the last 12 months and 14.7% on a year-to-date basis.

Out of the 41 analysts tracking the company, 29 have a 'buy' rating on the stock and eight recommend 'hold' and four suggest 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies a potential upside of 14.6%.