Marico fourth-quarter net profit drops 20%

MUMBAI: Consumer products maker Marico posted a 20% fall in fourth-quarter net profit from the year-earlier period when its numbers were boosted by an exceptional gain.

For the January-March quarter, it posted a Rs 88 crore net profit. Net sales rose 17% to Rs 1,072 crore. It had reported an exceptional item of Rs 47 crore a year earlier.

The maker of Parachute hair oil and Saffola edible oil said growth rates of various segments have come down due to a weak demand environment, impacting the company’s overall growth as well.

Marico’s domestic business expanded 16%, aided by 6% volume growth and price increases across its product portfolio. Its international business, which accounts for a quarter of total business, grew 21% in value.

Earnings margin before interest, tax, depreciation and amortisation expanded 168 basis points as advertising and promotion expenditure grew just 0.7%.