Marico Q3 biz update: Domestic volumes grow low-single digits; rural markets offer 'little to cheer'
Marico in its quarterly update said that while urban markets were steady, rural offered little to cheer, exhibiting similar demand trends on a sequential basis. In a stock exchange filing, the company said that constraints on liquidity and profitability in general trade channel remained an overhang for the sector.
Yet, the company remains optimistic of a gradual uptick in consumption trends of the course of 2024 owing to improving macroeconomic indicators, continued government spending and conducive consumer pricing across categories.
Parachute oil registered low single digits in volume growth whereas Saffola Oils witnessed optically weak quarter.
Value added hair oils posted low single-digit value growth amidst sluggishness in bottom of the pyramid segments, said the FMCG major.
International business delivered mid-single digit constant currency growth, according to the company.
Consolidated revenue declined in low single digits on a year-on-year basis.
Among key inputs, copra and edible oil prices remained at lower levels and crude derivatives also exhibited some downward bias, thereby leading to robust gross margin expansion on a year on year basis, said Marico.
«We expect low double-digit operating profit growth on the back of a healthy expansion in operating margin,» the company said.
