In line with market expectations, FMCG player Marico recorded a net profit growth (consolidated) of Rs 51 crore for the third quarter ending December 2008, a 9.8 per cent rise from Rs 46 crore in the corresponding quarter last year. The stock price rose 3.09 per cent to close at Rs 58.30 on the BSE.
The revenue of the group, which has products like Parachute, Saffola, Hair & Care and service presence under the Kaya brand, grew 23 per cent to touch Rs 623 crore, compared to Rs 505 crore for the same quarter a year ago. “Of the top-line growth, 7 per cent is volume growth and 16 per cent value growth led by price increases,” explained Milind Sarwate, chief, HR & Strategy, Marico.
On a sequential basis, the company’s net profit grew 7.8 per cent from Rs 47 crore. Its revenue grew 3.2 per cent QoQ.
“During the quarter, the company has reduced its advertising and overhead expenses and hence, it was able to negate the rise in input costs, which grew by 150 basis points,” said an analyst. However, Sarwate maintains a positive outlook for the coming quarter.