Marico's stock price falls 7% after Q2 profit drops 3% YoY to Rs 307 crore

7 Nov 2022 , 01:35 PM

On the strength of high volume trading on Monday, Marico shares fell 7% to Rs503.1 per share after the business announced a 3% year-over-year (YoY) decline in the September quarter (Q2FY23) profit to Rs307 crore. The manufacturer of personal items claimed that losses in the translation of foreign currency receivables and a higher effective tax rate were the main causes of the drop in earnings (ETR).

In Q2FY23, the company’s revenue from operations increased 3% YoY to Rs2,496 crore, with domestic business volume growth of underlying 3% and foreign business growth of underlying 11% constant currency growth.

At 17.3%, the EBITDA margin (earnings before interest, taxes, depreciation, and amortisation) decreased 17 basis points (bps) year over year. However, despite a 115 bps YoY increase in gross margin, it decreased sequentially as a result of higher raw material inventory costs and the negative effects of falling currencies in a few overseas markets.

“The FMCG industry in India saw volume fall for the fourth consecutive quarter as retail inflation remained stable, with price driving growth. Due to the impending holiday season, demand sentiment remained broadly consistent with the previous quarter and only marginally improved in the final month of the quarter “The business stated.

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