Marico's high volume growth, margins may not sustain

Q4 strong, but GST, ad spends, price hikes could affect near-term prospects

In March quarter (Q4), double-digit sales volume growth in flagship coconut oil (rigid-pack Parachute) as well as in enriched hair oils helped Marico grow volumes 10 per cent on domestic front, higher than expectations of six-seven per cent, and helped it  bounce back from a decline of four per cent in Q3. A key factor driving sales volumes was late price hikes that fuelled market share for Marico in hair oils. Edible oil business under Saffola brand continued to post healthy sales volumes growth of six per cent on a high base of 10 per cent a year ago.