FMCG firm marico Ltd on Saturday posted 3% year-on-year growth in net profit to Rs 377 crore in April-June on the back of improved margins during the quarter.
The company’s sales improved marginally by 1.3% y-o-y to Rs 2,558 crore because of subdued demand which was impacted by high retail inflation exerting pressure on consumers’ wallets.
Company’s margins expanded 130 basis points to 21.2% during the quarter on the back of 5.5% on year decline in raw material cost.
The company expects further margin improvement going ahead due to softening in raw material cost like that of palm oil and copra prices, it had said in its 2021-22 (April-March) annual report.
The company spent 13% higher on advertisements during the quarter to Rs 199 crore , however, the demand remained subdued.
Company’s India business saw 3.56% on year decline in sales to Rs 1,921 crore because of lower volumes of Saffola and parachute oil.
International business sales improved 19% year-on-year to Rs 637 crore.
The company will hold analyst call on Monday.