Shares of Marico gains over 6% to intra-day high of Rs 687 on NSE following the company’s Q2FY25 earnings report released on Tuesday after market hours. The homegrown FMCG major reported a 20% increase in consolidated net profit, reaching Rs 433 crore for the September quarter, up from Rs 360 crore in the same period last year.
Revenue and Expenses Overview
Marico’s consolidated revenue from operations rose by 7.6%, totaling Rs 2,664 crore during the quarter under review, compared to Rs 2,476 crore a year ago.
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However, total expenses for the company, which owns popular brands such as Saffola, Parachute, and Livon, increased by 7.65% to Rs 2,194 crore in the September quarter.
Total Income and Domestic Performance
The company’s total income, which includes other sources of revenue, was up by 9.22% to Rs 2,746 crore. Domestic revenue saw an 8.02% increase, amounting to Rs 1,979 crore, up from Rs 1,832 crore in the same quarter last year.
International Revenue Growth
Marico’s revenue from the international market also showed positive growth, rising 6.36% to Rs 685 crore, compared to Rs 644 crore in Q2FY24.
The company highlighted a “sequential uptick in growth in the domestic business,” while noting that the “international business continues to show robust performance,” as stated in its earnings presentation.
Brokerages on Marico
Jefferies on Marico
Jefferies has maintained a “Buy” rating on Marico and raised the target price to Rs 800 per share. The report indicates that the company’s Q2 performance was in line with expectations, featuring India volume growth of 5%, primarily driven by rural demand.
Jefferies anticipates that, with inflation returning, Marico is likely to experience accelerated revenue growth in the upcoming quarters. However, the firm also notes that inflation may exert some pressure on the company’s margins.
Nomura on Marico
Nomura has issued a “Buy” rating on Marico with a target price of Rs 760 per share. The report confirms that the company’s Q2 results were in line with its pre-quarterly update, indicating an improvement in demand.
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Nomura highlights that Marico has not been adversely affected by weakness in urban markets,
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