Marico Q4 Profit Rises 13% To Rs 257 Crore; Revenue Up 7%

FMCG firm Marico Ltd on Thursday reported a 13.21 per cent rise in consolidated net profit to Rs 257 crore for the fourth quarter ended March 2022.

The company had posted a net profit of Rs 227 crore in the year-ago period, Marico said in a BSE filing.

Its revenue from operations rose 7.40 per cent to Rs 2,161 crore during the quarter under review, against Rs 2,012 crore a year ago.

Marico's total expenses surged 7.13 per cent to Rs 1,863 crore from Rs 1,739 crore in Q4 FY21.

"In Q4FY22, Revenue from Operations grew by 7 per cent year-on-year to Rs 2,161 crores with the domestic business staying steady in a challenging consumption environment and the international business posting healthy double-digit revenue growth," Marico said in an earning statement. 

Its revenue from the domestic market rose 5.08 per cent to Rs 1,654 crore against Rs 1,574 crore in Q4 FY2020-21.

In India, rising inflation levels, exacerbated by geopolitical tensions, continued to weigh down the overall consumption sentiment, and even more so in rural.

"FMCG market continued to decline in Q4 in volume terms. Against this backdrop, Marico’s domestic business delivered a resilient 5 per cent revenue growth, with 1 per cent underlying volume growth," it said.

Marico’s revenue from international sales in Q4 FY22 was up 15.75 per cent at Rs 507 crore against Rs 438 crore in the corresponding period preceding fiscal. 

"The International business delivered 12 per cent constant currency growth in the quarter with each of the Bangladesh, South Africa and MENA businesses clocking double-digit constant currency growth. In the full year, the International business delivered a stellar 16 per cent constant currency growth," the company said.

For the fiscal ended March 2022, Marico's consolidated net profit increased 6.79 per cent to Rs 346 crore. It had reported a net profit of Rs 324 crore for 2020-21.

Its revenue from operation was at Rs 9,512 crore in 2021-22. This is 18.19 per cent higher than Rs 8,048 crore in the year-ago period.

Marico MD and CEO Saugata Gupta said: "We have closed the year on a positive note with healthy topline and bottom-line growth. The domestic business braved through challenging demand conditions and climbing costs to stay ahead of the overall FMCG market". 

However, Gupta also said that the near term demand outlook is "uncertain".

"We stay focused on doing the basics right and driving sustainable and profitable growth over the medium term," he said.

Marico holds its medium-term aspiration of delivering 13-15 per cent revenue growth on the back of 8-10 per cent domestic volume growth and double-digit constant currency growth in the international business.

"The company will aim to maintain operating margin above the threshold of 19 per cent over the medium term," it added.

Shares of Marico Ltd on Thursday closed 0.15 per cent up at Rs 518.65 apiece on BSE.