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Marico: Volume Growth Makes a Comeback - Views on News from Equitymaster
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Marico: Volume Growth Makes a Comeback
Mar 2, 2016

Marico declared results for the quarter ended December 2015. The company's consolidated revenues were up by 7% YoY during the quarter, while profits grew by 24% YoY. Here is our analysis of the results:

Performance summary

  • Revenues rise by 7% YoY during quarter ended December 2015.
  • Operating profits rise by 24% YoY as margins expand to 18.9% from 16.3% last year.
  • Net profits up by 24% YoY.
  • Board declares second interim dividend for the year of Rs 1.5 per equity share. The payment date shall be February 29, 2016.

Consolidated financial snapshot

(Rs m) 3QFY15 3QFY16 Change 9mFY15 9mFY16 Change
Net sales 14,524 15,564 7.2% 45,067 48,250 7.1%
Expenditure 12,155 12,626 3.9% 38,079 39,791 4.5%
Operating profit (EBIDTA) 2,369 2,938 24.0% 6,988 8,459 21.0%
EBDITA margin (%) 16.3% 18.9% 15.5% 17.5%
Other income 101 169 67.7% 401 658 64.0%
Depreciation 235 247 5.3% 643 692 7.7%
Interest cost 52 56 8.2% 173 136 -21.8%
Profit before tax 2,184 2,805 28.4% 6,573 8,289 26.1%
Tax 562 800 42.2% 1,840 2,328 26.5%
Effective tax rate 26% 29% 28% 28%
Profit after tax/(loss) 1,622 2,005 23.7% 4,733 5,961 26.0%
Minority interest/ share in profit of associates -23 -27 -99 -98
Net profit after tax 1,599 1,978 23.7% 4,634 5,864 26.5%
Net profit margin (%) 11.0% 12.7% 10.3% 12.2%
No. of shares (m) 644.9 1,290.2
Diluted earnings per share (Rs)* 5.4
Price to earnings ratio (x) 42.6

*On a trailing-twelve month basis

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