Marico posts 42% jump in Q4 net profit

MUMBAI: Consumer products maker Marico quarterly net profit rose 42%, lower than street estimates as one-time amount it received from the sale of edible oil brand ' Sweekar' boosted profit.

The maker of Parachute hair oil and Saffola edible oil posted a net profit of 71.62 crore that included 50 crore from Cargill India for sale of Sweekar and excise duty provision of over 25 crore. Net sales grew 24% to 747.35 crore, slightly above analysts' estimates led by volume growth of 12%.

"FY11, despite the challenge of all round inflation, has been satisfying with significant franchise expansion across all our key brands, " Marico's Consumer Products CEO Saugata Gupta said.

Copra prices, a key raw material for coconut oil, went up by 80% during the quarter as compared to a year ago period. However, Marico took over 30-35% price increase during the year which dragged its operating margin to 13.9. During the quarter, sales of its services business Kaya dropped 26% at 34 crore. Losses for the business increased too, at 37 crore compared to Rs 7.3 crore a year ago.

Marico's shares fell 2.33% to 136.45 on the Bombay Stock Exchange.