Parachute and Saffola maker Marico says almost all of its products are back in demand – more importantly, the recovery is in rural India

FMCG firm Marico Ltd on Wednesday reported a 13.04 per cent increase in consolidated net profit to Rs 312 crore for the quarter ended December 2020. The company had posted a net profit of Rs 276 crore in the October-December quarter a year ago.

Revenue from operations of the company went up by 16.33 per cent to Rs 2,122 crore during the quarter under review as compared to Rs 1,824 crore in the corresponding period of the previous fiscal, Marico said in a BSE filing.

Marico said in Q3FY21, revenue from operations grew on the back of a strong domestic volume growth of 15 per cent and a constant currency growth of 8 per cent in the international business.

In the India business, the company witnessed robust demand trends across more than 95 per cent of its portfolio amidst steadily improving consumer confidence and a declining COVID-19 graph, the firm said.

"Traditional trade led the growth... The company also continued to operate at reduced distributor inventory levels. Among the alternate channels, e-commerce witnessed augmented growth and modern trade also recovered sequentially to end flattish on a year-on-year basis," it said.

The FMCG major said during the quarter, as key raw materials witnessed inflationary trends, the company increased effective consumer pricing in select portfolios, while continuing to absorb the cost pressure to a certain extent.

Saugata Gupta, MD and CEO of Marico, said the company had a stellar quarter with very healthy growth in both the India and international businesses.

"With the core franchises exhibiting strength and new bets in foods also trending well, we expect the domestic business to deliver much ahead of medium term aspirations over the next few quarters. The international business is also poised to maintain steady growth over the next few quarters," he said.

Gupta said despite a challenging input cost backdrop, the company pulled in a resilient margin performance on the back of focused spends and aggressive cost control.

Over the medium term, the company aims to grow the core and build sizeable new franchises through premiumisation, foods and digital brands," he added.

Marico said in light of the subdued demand in the hygiene category post the initial surge, the company has consciously withdrawn investments and defocussed from this segment.

Marico's portfolio of brands include Parachute, Saffola, Hair & Care, Nihar Naturals, Livon, Set Wet, Mediker, Revive and Beardo.

Shares of Marico Ltd rose 0.52 per cent to end at Rs 412.50 apiece on the BSE. SVK MKJ