Net sales rose 9.1 per cent during the period to Rs 246.8 crore from Rs 226.7 crore in the same period last year. The company said that despite a sluggish market, all the brands grew in volumes, except Saffola where sales were constrained by raw material shortages during the first four months.

Operating margins kept pace with revenue growth and was maintained at 11.5 per cent of sales.

Despite a higher depreciation charge for the period, on account of a new manufacturing facility at Goa, lower finance costs helped Marico post pre-tax profits of Rs 23.9 crore, a growth of 10 per cent.

The board has recommended distribution of an interim dividend of Rs 3.5 per share as against Rs 3 per share in the previous year. The company board has withdrawn the proposal for amalgamation of loss makingKanmoor Foods Ltd with the company.

The company said on Thursday that the decision has been taken owing to adverse changes in the financial feasibility on account of the merger process taking a considerably long time and doubts arising as regards the availability or quantum of tax relief as originally envisaged.

Analysts said that the move will be beneficial to Marico shareholders as the share price had been impacted negatively to the merger proposal.

The company said that EM Warburg Pincus, a leading strategic investment firm, has so far acquired about five per cent of Marico's equity against the FIPB approval for 9.99 per cent. The company said that the investment has been through the secondary market with no fresh issues of shares being contemplated.

The company said that the second fiscal of the current year is expected to improve, led by continued good offtake of edible oils and boosted by improved realisations of Parachute.