Marico zooms to a new high

The ‘Parachute’ company, Marico, our desi FMCG company is currently the top gainer on the BSE, up 15% at Rs.294, a new 52-week high.

The stock is reacting to the good set of numbers the company posted for Q1Fy15. Consolidated revenue at Rs.1623 crore, was up 25% (YoY), on the back of  an overall 5% growth in volume and 6.5% growth in India. Domestic business grew 28%  while international business grew 16%. EBITDA showed a 20% growth at Rs.267 crore and net profit for the quarter was up 19% at Rs.185 crore.

Looking ahead, despite rising price of input costs, especially copra, the company hopes to maintain the prices at current levels and this means in the immediate medium term, it could face some margin compression. Yet, it is estimated to maintain margins at 17-18%. It expects volume growth of 7-8% in the immediate future and it expects major support from its Youth Brands portfolio (Set Wet, Zatak, Livon) to show a 15 to 20% growth.