Competition takes toll on Marico's bottomline - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Competition takes toll on Marico's bottomline

Apr 27, 2000

Marico Industries has posted a 5% drop in its net profits to Rs 357 m on a turnover of Rs 6,483 m for the FY2000 over the previous period. The intense competition in the domestic branded oil market, had resulted in increase in company's operational expenditure directly impacting its bottomline. The company has significantly stepped up advertisement and sales promotion expenditure for the new products launched in the current year as well as the existing product range. This has resulted into decline in its operating profit margins to 8.1% in FY2000 (9.3% in FY1999). Also as a result of steep decline in prices of most edible oils, Marico had to reduce retail prices of refined edible oils negatively impacting company's profit margins.

The company's export sales grew by 23% over the previous year.In order to optimally tap the potential offered by Bangladesh, the company set up a wholly owned subsidiary in Bangladesh which commenced local operations during the year.

Marico's flagship brand Parachute showed a healthy volume and value growth and maintained its market share in the difficult market conditions. The brand has faced stiff competition from HLL's Nihar and Dabur's Vatika Hair Oil.

(Rs m) FY99 FY00 Change
Sales 5,512 6,483 17.6%
Other Income 19 12 -34.8%
Expenditure 5,001 5,960 19.2%
Operating Profit (EBDIT) 511 523 2.5%
Operating Profit Margin (%) 9.3% 8.1%  
Interest 37 32 -13.0%
Depreciation 52 78 49.4%
Profit before Tax 440 426 -3.3%
Other Adjustments - 18  
Tax 65 51 -22.5%
Profit after Tax/(Loss) 375 357 -4.7%
Net profit margin (%) 6.8% 5.5%  
Earnings per share 25.87 24.64  

Equitymaster requests your view! Post a comment on "Competition takes toll on Marico's bottomline". Click here!


More Views on News

MARICO 2020-21 Annual Report Analysis (Annual Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

Here's an analysis of the annual report of MARICO for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of MARICO. Also includes updates on the valuation of MARICO.

MARICO Announces Quarterly Results (1QFY22); Net Profit Down 6.4% (Quarterly Result Update)

Aug 3, 2021 | Updated on Aug 3, 2021

For the quarter ended June 2021, MARICO has posted a net profit of Rs 4 bn (down 6.4% YoY). Sales on the other hand came in at Rs 25 bn (up 31.2% YoY). Read on for a complete analysis of MARICO's quarterly results.

MARICO Announces Quarterly Results (3QFY21); Net Profit Up 13.0% (Quarterly Result Update)

Jan 28, 2021 | Updated on Jan 28, 2021

For the quarter ended December 2020, MARICO has posted a net profit of Rs 3 bn (up 13.0% YoY). Sales on the other hand came in at Rs 21 bn (up 16.3% YoY). Read on for a complete analysis of MARICO's quarterly results.

Adani Wilmar IPO to Hit the Market Soon. Should you Apply? (Views On News)

Nov 29, 2021

The parent company of the brand Fortune is set to raise Rs 45 bn from the market.

What Happens if ITC Hives off ITC Infotech? (Views On News)

Nov 20, 2021

The cigarette to hotel conglomerate is reportedly mulling the demerger of its software business at a valuation of around Rs 250 bn.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 8, 2021 01:07 PM