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Marico: Good work continues…

Oct 17, 2002

Marico Industries, the edible oil major, continues to display strength in financial performance. In the September quarter, the company has recorded a strong 13% growth in topline and over 17% growth in net profit on a consolidated basis. The consolidated numbers include the performance of its 100% Bangladesh subsidiary.

Consolidated picture…
(Rs m) 2QFY02 2QFY03 Change 1HFY02 1HFY03 Change
Net Sales 1,723 1,954 13.4% 3,244 3,770 16.2%
Other Income -2 8 - 7 14 100.0%
Expenditure 1,539 1,762 14.4% 2,896 3,375 16.5%
Operating Profit (EBDIT) 183 192 4.9% 348 395 13.7%
Operating Profit Margin (%) 10.6% 9.8%   10.7% 10.5%  
Interest 13 4 -68.2% 21 9 -57.7%
Depreciation 32 36 14.5% 58 73 24.9%
Profit before Tax 137 160 16.8% 275 327 18.8%
Tax 26 30 14.6% 52 62 19.0%
Profit after Tax/(Loss) 111 130 17.3% 223 265 18.8%
Net profit margin (%) 6.4% 6.7%   6.9% 7.0%  
No. of Shares 14.5 29.0   14.5 29.0  
Diluted Earnings per share* 15.3 18.0   15.4 18.3  
P/E Ratio   9.0     8.9  
*(annualised)            

Marico Industries (excluding Bangladesh) reported 12% growth in topline and only 8% bottomline growth during the September quarter. Here too, deferred tax deflated net profit growth. However, it is clear the the Bangladesh operations of the company are picking up and this helped the company report improved overall performance.

Marico Industries snapshot…
(Rs m) 2QFY02 2QFY03 Change 1HFY02 1HFY03 Change
Net Sales 1,660 1,851 11.5% 3,148 3,607 14.6%
Other Income 6 9 46.6% 13 14 7.1%
Expenditure 1,477 1,664 12.6% 2,800 3,224 15.1%
Operating Profit (EBDIT) 183 187 2.4% 347 383 10.3%
Operating Profit Margin (%) 11.0% 10.1%   11.0% 10.6%  
Interest 13 4 -68.2% 21 9 -58.2%
Depreciation 31 36 15.0% 58 72 25.1%
Profit before Tax 145 156 7.7% 281 316 12.2%
Tax 26 28 7.6% 52 58 11.3%
Profit after Tax/(Loss) 118 128 7.8% 229 258 12.3%
Net profit margin (%) 7.1% 6.9%   7.3% 7.1%  
No. of Shares 14.5 29.0   14.5 29.0  
Diluted Earnings per share* 16.3 17.6   15.8 17.8  
P/E Ratio   9.2     9.1  
*(annualised)            

At Rs 162 the stock is trading at 8.9x annualised 1HFY03 earnings.

The Bangladesh picture…
(Rs m) 2QFY02 2QFY03 Change 1HFY02 1HFY03 Change
Sales 62 102 64.5% 96 163 70.0%
Operating profit 0 5 - 0 12 -
OPM (%) - 4.6%   0.2% 7.4%  
Net profit -7 3 - -6 8 -
NPM (%) -11.7% 2.6%   -6.4% 4.6%  


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