Marico Q1 result: Profit rises 8.7% to Rs 464 cr on hair oil demand

India's Marico, which owns the Saffola and Parachute packaged oil brands, reported a slightly bigger-than-expected increase in first-quarter profit on Monday, helped by steady demand and said its earnings would grow this year.

The company's consolidated net profit rose 8.7 per cent to Rs 464 crore ($55.4 million) in the April-June quarter, just above analysts' average estimate of Rs 463 crore, according to LSEG data.

Total revenue from operations increased 6.7 per cent to Rs 2,643 crore, marking its biggest growth in more than two years. Revenue from India, which made up three-fourths of total revenue, climbed 7.4 per cent.

For Marico, sales volumes for both cooking and hair oils increased in the quarter. While the Parachute hair oil business was helped by higher prices, its Saffola cooking oil business benefitted from price cuts.

Revenue growth will "trend upwards" on higher sales volumes, including in the international business, with earnings also increasing this financial year, Marico said in an investor update.

The company's shares were up 2.1 per cent at Rs 676.6 at 14:05 IST, taking their gains for the year to more than 23 per cent.

Branded cooking oil sellers in India, including Fortune-owner Adani Wilmar and Ruchi Gold-owner Patanjali Foods, typically book higher profits when edible oil prices are stable, according to industry executives.

Last month, both companies posted solid profits, also citing a stability in edible oil prices.

Overall, though, consumer goods makers have posted mixed results.

Dove soap-maker Hindustan Unilever reported higher earnings as price cuts boosted demand, while KitKat-maker Nestle India reported its slowest growth in eight years as price hikes drove consumers away.