Marico shares gain nearly 4% on volume growth in March quarter
Upstox
2 min read • Updated: April 5, 2024, 6:54 PM
Summary
Marico Ltd, in its Q4 business updates, informed the stock exchanges that it expects the consolidated revenue for the March quarter to increase for the first time after three quarters.
Marico Ltd shares closed with a gain of more than 3% on Friday, April 5, after the company reported positive business updates for the fourth quarter of the financial year 2023-2024. In Q4FY24, the company reported a marginal volume growth.
Amid the positive investor sentiment, the shares of the company gained as much as 3.93% to an intraday high of ₹510.85 apiece on the NSE. However, the stock pared gains and settled at ₹509 apiece, up 3.64%, at close.
The leading consumer products company, in the Q4 business updates released on Friday, announced that its international business is now seeing double-digit growth.
The company also expects its consolidated revenue for the March quarter to increase in low single digits for the first time after three quarters of sluggish growth.
Marico also expects that its domestic revenue will grow faster than the volume growth in the future quarters, with a significant increase in gross profit margins on a yearly basis. The domestic business of the company in Q4 witnessed a slight increase in the volume growth due to steadying trends in most of the portfolios.
The company also expects a gradual uptick in its core categories in future. The growth is likely to come through the ongoing initiatives to enhance profitability of its general trade (GT) channel partners and focused investments towards a transformative expansion in its direct reach footprint across urban and rural outlets in the upcoming years.
Marico's key products like Parachute coconut oil reported low-single digit volume growth in the quarter ending March 2024 while the volume of Saffola Oil increased in mid-single digit.
The company in FY 2022-23, recorded a turnover of about $1.2 billion through its products sold in India and chosen markets in Asia and Africa. Some of the prominent brands in the company's portfolio include Parachute, Saffola, Hair and Care, Parachute Advansed, Nihar Naturals, Mediker, Revive, Set Wet and Livon.
The company has a presence in over 25 countries across emerging markets of Asia and Africa. It has seven factories in India, located at Puducherry, Perundurai, Jalgaon, Guwahati, Baddi and Sanand.