Edible oils major, Marico Industries has recorded a 30% growth in its 3QFY01 bottomline. This growth comes on the back of a 2% decline in turnover during the same period. The general economic slowdown seems to have affected Marico's topline as well. A significant 40% reduction in interest costs helped Marico post this surge in bottomline.
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This quarter's performance was however, better than the company's 2QFY01 performance. In 2FY01, the company's bottomline grew by only 10%, while its turnover declined by 5%. Marico's key brands showed volume growth. In 3QFY01, volumes of Marico's coconut oil franchise (Parachute and Oil of Malabar) grew by 15%. Its refined edible oil franchise (Saffola and Sweekar) grew by a significant 48% over 3QFY00.
On a nine month consolidated basis, Marico's bottomline saw a 36% surge over the correponding period in FY00. If however, we exclude the extraordinary expense that occurred in 3QFY00 (of Rs 18 m), the bottomline actually grew by 27%. The turnover however, was more or less at the same levels during the period.
In the nine month period, Marico managed to improve its operating margins by 160 basis points on the back of a 1.4% decline in its expenditure.
At the current price of Rs 235, the stock trades at a P/e of 7.3 times its nine month annualised FY01 earnings.
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