Marico share price falls over 4% on lower consolidated revenue, single digit volume growth in Q2 amid rural pain
₹546.40 apiece on the BSE. Marico said that during the second quarter of FY24, domestic volumes grew in low-single digits on a year-on-year basis, with low single digit volume growth in Parachute Coconut Oil and Saffola Edible Oils, and low single-digit value growth in Value Added Hair Oils.
“During the quarter, demand trends largely mirrored the trends observed in the preceding quarter. Instances of rising food prices and below-normal rainfall distribution in some regions seemed to impede the anticipated recovery in rural demand.
Consumption trends, particularly in rural, are expected to improve in H2 owing to retail inflation levels staying within RBI’s target range, hike in MSPs, healthy sowing season, easing liquidity pressures and government spending," Marico said in a regulatory filing. Also Read: HDFC Bank Q2 Update: Advances grow 57% to ₹23.54 lakh crore, home loans rise 10% YoY after merger The International business delivered double-digit constant currency growth, thereby exhibiting sustained resilience amidst a volatile global operating environment, it added.
On a consolidated basis, the company’s revenue was marginally lower on a YoY basis in Q2FY24, dragged by pricing corrections in key domestic portfolios over the last 12 months and currency depreciation in some of the overseas markets which had an adverse effect on the reported INR growth in the international business. Among key inputs, copra and edible oil prices stayed in a favourable range, although the latter continued to exhibit some volatility.
Crude derivatives remained firm with an upward bias. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “Con
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