Consumer goods maker Marico on Thursday said it expects to report double-digit year-on-year growth in operating profit for the March quarter, supported by steady demand conditions and easing input costs.
The company indicated a gradual recovery in consumption across categories after several quarters of muted urban demand, aided in part by the goods and services tax reductions implemented in September. “We remain hopeful of a gradual improvement in consumption trends in the quarters ahead, while the macroeconomic impact of the evolving geopolitical situation in the Middle East is a key monitorable,” Marico said in a statement.
Consolidated revenue is expected to grow in the low twenties percentage range in the fourth quarter ended March 31. Gross margins are likely to improve sequentially, driven by lower copra prices, a key raw material for its portfolio.
The maker of Saffola edible oils and Parachute coconut hair oil said it remains confident of delivering healthy volume-led revenue growth in FY27.
Within its India business, Saffola oils and Parachute hair oils, which together contribute about half of domestic revenue, are expected to post high single-digit and low single-digit growth, respectively, during the quarter. The company also expects volume growth in the Parachute franchise to strengthen over FY27.
Underlying volume growth in the India business remained in the high single digits, marking a modest sequential improvement.
On the international front, Marico said most markets delivered positive contributions, except the Gulf region, which was impacted by geopolitical disruptions during March. The company has operations across regions including Bangladesh and South Africa, in addition to its domestic market.
Marico had reported consolidated revenue of Rs 2,730 crore in the corresponding quarter last year, reflecting a 20% year-on-year increase.