Home Hair highlights Profit up 15%, reduced copra price cushion margin

Profit up 15%, reduced copra price cushion margin

2
0

The quarterly profit of Marico Ltd. rose even as rising input costs, sluggish demand and higher advertising and promotional spending weighed.

Net profit at hair oil maker Parachute and cooking oil Saffola rose 15% year-on-year to Rs 251 crore in the quarter ended March, according to its exchange filing. This compares to the consensus estimate of Rs 258.17 crore from analysts tracked by Bloomberg.

Marico Q4 FY22 Highlights (Annual)

  • Revenue up 7% to Rs 2,161 crore, against forecast of Rs 2,175 crore.

  • Operating profit increased by 8% to Rs 346 crore from estimated Rs 359.24 crore.

  • The margin stands at 16% against 15.9%.

  • Advertising and promotion expenditure increased from Rs 204 crore to Rs 173 crore.

During the quarter, Marico took calibrated price increases in hair oils and edible oils to combat soaring raw materials, mostly crude, according to its quarterly report released last month. Copra price deflation, however, helped the margin remain unchanged from a year earlier, he said.

Ad spend increased 17.9% year-over-year as Marico continued to invest in strategic brand development of major and new franchises.

Marico’s share closed 0.17% lower ahead of the earnings release, versus a flat Nifty 50 benchmark.