In early morning trade on Monday, shares of FMCG giant Marico surged up to 6.56% at Rs 655.70 per share on the BSE. This followed Marico's business update for the first quarter of the 2024–25 fiscal year (Q1FY25) that was released on Friday.
The firm stated in an exchange filing that it anticipates a little sequential rise in underlying volume growth for its domestic business in the June quarter. Notwithstanding the lingering effects of price reductions in the Saffola Oils portfolio and currency challenges in international markets, the business reported high single digit growth in its consolidated sales.
"We anticipate a positive trend in consolidated revenue growth throughout the year, driven by an enhanced trajectory in domestic volume growth and increased realisations as a result of the advantageous pricing cycle in significant domestic portfolios," the company stated.
Furthermore, Marico anticipates that a favorable portfolio mix would cause gross margin to increase year over year. Operating margin is predicted to increase marginally year over year as operating profit grows marginally faster than sales.
Marico recorded a total net profit of Rs 320 crore for the fourth quarter of the financial year 2023–24, up 4.9 percent over the same time the previous year. The firm made Rs2,278 crore in sales during the quarter, a little increase of 1.69 percent year over year. The company's stock was up 5.43 percent at Rs 648.70 a share on the BSE at 10:03 AM. By contrast, the BSE Sensex dropped 0.23 percent to close at 79,811. With an earnings per share of Rs. 8.33, the company's shares are now trading at a price to earnings multiple of 73.86 times.
