FMCG firm Marico Ltd on Monday reported a 23.17 percent increase in its consolidated net profit to Rs 388 crore for the first quarter ended June 30, helped by increase in operating margins.
The company had posted a net profit of Rs 315 crore in April-June quarter a year ago, Marico said in a BSE filing.
However, its revenue from operations fell 11.12 percent to Rs 1,925 crore during the quarter under review, as against Rs 2,166 crore in the corresponding quarter previous year.
“EBITDA was up 1 percent, led by 300 bps expansion in operating margins which was attributable to softer input costs, rationalisation of A&P (advertising and promotions) spends in discretionary portfolios and very aggressive cost control,” said Marico in the earning statement.
Its total expenses declined 7.39 percent to Rs 1,501 crore in Q1 FY 2020-21, compared to Rs 1,752 crore.
During the period, domestic sales were down 14.50 percent at Rs 1,480 crore, over Rs 1,731 crore in the same period a year ago.
“The domestic business was severely impacted in April due to supply-chain disruptions following the extension of the national lockdown but was able to scale up sequentially in May and June as restrictions were relatively eased,” it said.
In domestic business, its operating margin improved to 25.7 percent in Q1FY21 as against 22.6 percent in Q1FY20.
Revenue from the international business was up 2.29 percent to Rs 445 crore, as against Rs 435 crore a year earlier.
“While the international business de-grew by 4 percent in constant currency terms, Bangladesh continued to hold the fort by delivering a commendable 10 percent constant currency growth, while other geographies recorded double-digit drops,” it said.
Over the outlook, the company said its business has recovered smartly in May and June after a tough April.
“Since the business has recovered to near-normal levels and growth trends have been improving from May, the company will strive to sustain the momentum and deliver growth in the balance part of the year, provided the ongoing COVID-19 crisis doesn’t drastically worsen in the times to come. The company expects operating margins to be circa 20 percent for the rest of the year,” it said.