Marico rallies 6% hits record high on healthy business growth in Q2
Published On: Wednesday, October 6, 2021 | By: Team KnowMyStock
Shares of Marico rallied nearly 6 percent to hit a record high of Rs 590 on the BSE in Wednesday’s intra-day trade after the company said it has witnessed healthy consumer sentiment across categories and has recorded revenue growth in the low twenties with strong double-digit volume growth on a 2-year compound annual growth rate (CAGR) basis during the September 2021 quarter. "During the quarter, the sector witnessed improving demand trends as mobility levels increased with reducing COVID-19 infections and accelerated vaccination drives. Discretionary categories and out-of-home consumption also visibly picked up," the company said in a regulatory filing. Parachute oil delivered with their medium-term aspirations. Saffola franchise, Saffola Edible Oils had a muted quarter, largely due to volatility in edible oil prices leading to trade destocking and partly owing to lower in-home consumption.
On the other hand, Marico said its foods business continued to "grow smartly" and remained on course to clock Rs 500 crore in revenues this year. The international business delivered double-digit constant currency growth as we witnessed positive trends in all markets, except Vietnam. Vietnam, where a large part of our portfolio is of a discretionary nature, was in the grip of a severe Covid surge and stringent lockdown restrictions” Marico said.On the outlook, it said gross margin is expected to improve marginally from the previous quarter but will be under pressure on a year-on-year basis due to much higher input costs over the last year.
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