FMCG major Marico is looking for double-digit growth in the second half of FY25 and expects the prevailing high food inflation to moderate in the next two quarters, which will help revive urban consumption, its MD & CEO Saugata Gupta said. The company, which has already gone for a price hike for its Saffola range, expects a similar action from other FMCG players as prices of raw materials such as coffee, cocoa, and palm oil have gone up. "In the sector, there will be some price increases. If you look at some other input costs for other players, there has been a globally significant increase in the prices of coffee, and cocoa, So there is a little bit of inflation situation and now you are seeing a significant increase in palm oil prices. "So across the sector, there will be some price increase," Gupta told PTI. However, he also pointed out that most of the big-scale FMCG manufacturers would try to absorb a portion of the increase in the commodity prices through various cost ...
The Marico share price rallied after the company posted stronger-than-expected Q2FY25 results, which beat street estimates
Marico's Q1FY25 consolidated revenue grew 6.7 per cent Y-o-Y to Rs 2,640 crore, while operating profit rose 9.1 per cent Y-o-Y to Rs 630 crore
With improved macroeconomic indicators, enhanced government spending, a favorable monsoon forecast and moderate retail inflation, the upcoming year holds promise for a gradual uptick in consumption.
Domestic volume growth in low single-digits
There could be a gradual uptick in volume and value growth in the current year
To pay Rs 172 cr under the deal, which is expected to be completed by March 31
Further price cuts, higher advertising costs to weigh on margins
The company's Parachute coconut oil also recorded a marginal volume decline in the quarter
Stable price outlook for inputs such as copra, however, is a positive
However, some brokerages are cautious about growth trends though the company is better placed than peers on the raw material front
Lower copra costs and price cuts to aid volumes and margins
Brokerages are however positive on medium term growth outlook for core and new areas
Valuations, however, cap upsides in the near term
March quarter performance is expected to be strong on low base, price hikes
Stock tanks on flat top line in the September quarter, even as benign copra prices save the day, leading to a 16 per cent rise in pre-tax profit
Copra prices have come down by 32% in the current year