Shares of Marico Ltd. surged by more than 4% on Friday, following the company's first quarter business update. The company posted an increase in underlying volume for its India business, reaching a multi-quarter high.
The FMCG company attributed this growth to positive trends in its core franchises and the continuous expansion of new business segments. These developments come amid improving conditions in rural markets and stable urban sentiment. Marico anticipates further improvement in the upcoming quarters, driven by easing inflation, a favourable monsoon, and policy stimulus.
Despite a slight decline in volumes for its Parachute brand, which the company attributed to hyperinflationary input costs and pricing conditions, other segments showed robust performance. Saffola Oils reported revenue growth in the high twenties, supported by mid-single-digit volume growth. Marico emphasised that the benefits of the recent reduction in import duties on vegetable oils have been passed on to consumers.
Marico's international business also demonstrated strong performance, with high constant-currency growth across most markets. "Bangladesh continued to exhibit visible resilience with high-teen constant currency growth," the company noted in its filing.
Marico Share Price Today
The scrip rose as much as 4.36% to Rs 744.45 apiece. It pared gains to trade 1.98% higher at Rs 727.50 apiece, as of 11:03 a.m. This compares to a 0.032% advance in the NSE Nifty 50.
It has risen 20% in the last 12 months. The relative strength index was at 51.85.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
