FMCG player Marico today reported an 11.92 per cent decline in its consolidated net profit to Rs 235.94 crore for the first quarter ended June 30, on account of reduction in sales due to transition into GST. The company had posted a net profit of Rs 267.90 crore during the same period previous fiscal, Marico said in a BSE filing. Total income from operations during the quarter under review stood at Rs 1,715.28 crore as against Rs 1,781.78 crore in the April-June quarter of 2016-17, down 3.73 per cent. Revenue from its Indian operation declined 4 per cent to Rs 1,327.51 crore as against Rs 1,387.37 crore.
“This lower growth is attributed to the transitionary impact of GST and the subsequent pipeline reduction in trade especially in rural, wholesale channel and CSD,” Marico said. During the quarter, Marico’s International business witnessed marginal revenue dip at Rs 364.87 crore compared to Rs 366.89 crore in the year-ago period. “During the quarter, Marico’s International business grew by 6 per cent in constant currency terms (volume growth of 1%). MENA region continues to experience macroeconomic headwinds which put pressure on the overall international business,” the company said.
Total expenses during the quarter were Rs 1,392.69 crore compared to Rs 1,406.44 crore in the corresponding period previous fiscal, down 9.77 per cent. On the outlook, the company said: “We are positive on the benefits of GST to organized players like us in the long run and expect pipeline refilling to happen in coming quarters”.