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India's Marico beats Q2 profit approximates on cost walkings

Indian durable goods maker Marico reported secondquarter earnings well above market estimates on Tuesday, propped up by cost walkings carried out to offset higher basic material costs.

The company reported a near-20% rise in combined net profit to 4.23 billion rupees ($ 50.3 million) for the three months ended Sept. 30.

Experts were expecting an earnings of 3.86 billion rupees, according to information assembled by LSEG.

To balance out a 25% year-on-year increase in rates of copra, the main basic material utilized to produce coconut oil, Marico raised costs of the item in India.

The price hikes included a 15% boost in its edible oil sector.

Pricing development for the sector turned favorable on a. year-on-year basis as brands effected rate increases in. reaction to rising commodity prices, Marico said in a. declaration.

It said its gross margin expanded by 30 basis points from a. year earlier as healthy margin improvements more than made up. for increase in input expenses.

Sales volumes of Parachute coconut oils - its most significant. sector by domestic profits - rose 4%, while earnings grew 10%.

Meanwhile, sales volume of Marico's Saffola brand of. edible oils were flat year-on-year, while revenue rose 2% due to. cost walkings.

Marico's profits from operations rose 7.6% to 26.64. billion rupees.

The company anticipated domestic revenue growth in double. digit portions in the 2nd half of the , and. said it expects global business to maintain consistent. currency development in double-digit percentages.

Marico and rival Adani Wilmar have posted largely. solid results, propped up by need for cooking oils.

This stands in contrast to Nestle India, Hindustan. Unilever and ITC which reported downbeat. revenues due to a slowdown in demand.

(source: Reuters)