Marico shares surge 6.5% on strong Q1 business update

8 Jul 2024 , 05:39 PM

Shares of FMCG major Marico surged up to 6.56% to ₹655.70 per share on the BSE during Monday’s early morning trade. The rise followed Marico’s business update for the first quarter of FY 2024-25 (Q1FY25) released on Friday.

Marico expects its domestic business to show a modest increase in underlying volume growth on a sequential basis during the June quarter. The company’s consolidated revenue grew in high single digits despite pricing cuts in the Saffola Oils portfolio and currency headwinds in overseas markets.

Marico anticipates consolidated revenue growth to trend upwards throughout the year due to improving domestic volume growth and higher realizations from a favorable pricing cycle in key domestic portfolios.

The company expects gross margin expansion year-on-year owing to a favorable portfolio mix. Operating profit is expected to grow slightly ahead of revenue, leading to a marginal increase in operating margin year-on-year.

For Q4 FY 2023-24, Marico reported a consolidated net profit of ₹320 Crore, a 4.9% increase from the same period last year. Revenue for the quarter rose by 1.69% year-on-year, reaching ₹2,278 Crore.