X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Competition takes toll on Marico's bottomline - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Apr 27, 2000

    Competition takes toll on Marico's bottomline

    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: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    Marico: Margin Expansion Drives Profit Growth (Quarterly Results Update - Detailed)

    Nov 28, 2016

    Marico has reported a flat topline while the bottomline has grown by 18% YoY during the quarter.

    Marico: Profiting From Lower Input Cost Scenario (Quarterly Results Update - Detailed)

    May 6, 2016

    Marico announced results for the quarter and year ended March 2016. While revenues rose by 7% YoY during the year, net profits increased by 26% YoY.

    Marico: Volume Growth Makes a Comeback (Quarterly Results Update - Detailed)

    Mar 2, 2016

    Marico announced results for the quarter ended December 2015. While revenues rose by 7% YoY, net profits increased by 24% YoY.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    MARICO LTD SHARE PRICE


    Aug 22, 2017 (Close)

    TRACK MARICO LTD

    • Track your investment in MARICO LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MARICO LTD 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE MARICO LTD WITH

    MARKET STATS