Shares of this FMCG stock under the ‘large-cap’ category fell around 4 percent in Thursday’s early trade after the company provided low growth for the quarter period ended in September 2023.
With a market capitalization of Rs 70,779.13 crores, the stocks of Marico Limited started their training session on Thursday at Rs 557.95 and currently trade at Rs 547.15, slipping around 4 percent as compared to the previous close of Rs 570.50 apiece.
Such sharp down movements were observed today after the company, in a regulatory filing with the Bombay Stock Exchange (BSE) dated 4th October 2023, provided business updates for the quarter ended September 2023, i.e., Q2FY23-24.
During the quarter, the anticipated recovery in rural demand was hindered by below-normal rainfall distribution in some regions as well as rising food prices. Despite maintaining high margins, the company was able to record low single-digit growth as far as the edible oil sales volumes are concerned.
The consolidated revenue was marginally lower on a YoY basis caused due to the price corrections in the domestic portfolios in the past year. Moreover, the depreciation of INR affected the company’s growth in the international business.
Coming onto the most recent financials, the company has been successful in increasing its prime business indicators such as operating revenues as well as after-tax profits.
The operating revenues rose from Rs 2,240 crores during Q4FY22-23 to Rs 2,477 crores during Q1FY23-24, and, the after-tax profits moved up from Rs 305 crores to Rs 436 crores.
In addition, the profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE) were stable at healthy numbers with the former reported at levels of 38 percent and the latter reported at levels of 45 percent.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold a 59.42 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 24.96 percent in the company.
Marico Limited is a beauty and wellness products company based in India that is present in emerging markets including Asia and Africa. Locally, Marico sells its products under the brand names comprising Parachute, Parachute, Livon, Set Wet, Revive, and many more.
Written by Amit Madnani
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