Consumer goods maker Marico Ltd. reported its biggest decline in quarterly profit as supply disruption in the run-up to the Goods and Services Tax hurt volumes.
The maker of Parachute hair oil reported a net profit of Rs 236 crore in the April-June quarter, 11.9 percent lower than the year-ago period. The consensus estimate of analysts tracked by Bloomberg stood at Rs 262 crore.
Volumes fell 9 percent for the quarter as transition to GST led to a disruption in the wholesale channel, especially in rural areas, the company said in a statement. It has also promised distributors to make good the losses on transition stock.
- Total income fell 3.5 percent to Rs 1,692 crore year-on-year.
- Total expenses at Rs 1,393 crore contracted 90 basis points.
- Earnings before interest, tax, depreciation and amortisation declined 13.6 percent to Rs 323.5 crore.
- Margin contracted to 19.2 percent from 21.4 percent.
Shares of the company fell as much as 5.1 percent, the most in over eight months, to Rs 317.5 apiece after the earnings were announced.
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