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.
Staid performance by Marico in 2QFY01 - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 24, 2000

    Staid performance by Marico in 2QFY01

    Edible oils major, Marico Industries has recorded a 10% growth in its 2QFY01 bottomline. This growth comes on the back of a 5% decline in turnover during the same period.

    (Rs m) 2QFY00 2QFY01 Change 1HFY00 1HFY01 Change
    Sales 1,712 1,631 -4.7% 3,062 3,099 1.2%
    Other Income 2 7 363.3% 4 13 196.5%
    Expenditure 1,548 1,466 -5.3% 2,812 2,772 -1.4%
    Operating Profit (EBDIT) 164 165 0.3% 250 327 30.7%
    Operating Profit Margin (%) 9.6% 10.1%   8.2% 10.5%  
    Interest 8 9 3.7% 12 19 57.9%
    Depreciation 19 22 14.2% 34 50 46.7%
    Profit before Tax 138 141 2.2% 208 271 30.0%
    Tax 20 11 -41.8% 30 23 -22.7%
    Profit after Tax/(Loss) 119 130 9.5% 179 248 38.7%
    Net profit margin (%) 6.9% 8.0%   5.8% 8.0%  
    Earnings per share* - -   24.7 34.2  
    Current P/e ratio         7.4  

    The company's product portfolio includes well known brands like Parachute (coconut oil), Saffola and Sweekar (edible oils), Revive (Starch) , Sil (jams) and Hair & Care (non-sticky hair oil).

    If we consider Marico's first half results in totality then, the company has put in a reasonably good performance. Though the company's turnover did not show much growth (up only 1%), Marico's bottomline surged 30% in 1HFY01.

    The company's bottomline has surged largely on account of lower tax provisioning and lower raw material costs. In fact copra (a key raw material) prices were down 36% on an average. Though the company's turnover has not shown much growth in value terms, all the company's major brands have registered good volume growth in 1HFY01. Parachute grew by 6%, Saffola by 20% and Sweekar by 11%. The volume growth was not reflected in the turnover as the company had reduced its retail prices on competitive pressures.

    Faced by the competitive onslaught by HLL, Marico not only cut prices, but also upped its advertising and promotional expenditure. In fact, its advertising expenses were 11.6% of 1HFY01 turnover. This is high when compared to 7.8% (advertising/sales) in 1HFY00.

    Marico's stock currently trades at Rs 253, which is 7.4 times its FY01 earnings. Given the competitive pressures it faces, it has an uphill journey ahead.



    Equitymaster requests your view! Post a comment on "Staid performance by Marico in 2QFY01". 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

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    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.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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


    Aug 18, 2017 (Close)


    • 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


    Compare Company With Charts