However, Managing Director and CEO Saugata Gupta said, “We believe that the worst is over. Obviously, the improvement will not be like a hockey stick kind of a U-turn, but it will improve, definitely.”
The company reported 6% volume growth in the third quarter and aims to push it toward high-single digits.
“A mid-single-digit is something which is eminently possible. Our endeavour will be to gradually move that to high single digit. I think 10% is something which will depend on the environment and other factors,” he said.
The company is confident about delivering double-digit revenue growth over the next two quarters, aided by the price increases.
To support growth, Marico has expanded its food, digital, and premium personal care businesses, which now account for 21% of its revenue, up from 6% in 2020. The company has maintained its advertising and promotional spending while managing costs through efficiency programs.
Margins are currently at 19.1%, and the company aims to bring them back to 20%.
Gupta said the inflationary cycle is expected to continue for the next two quarters, with some relief likely in the latter half of the year.
“As far as the copra is concerned, we are broadly at the fag end of this inflation cycle. It’s usually 18 months cycle. We expect things to improve some time and towards the end of quarter one, so obviously there will be a lag, and things will start improving from quarter two.”
Marico shares are currently trading at ₹608 as of 11:35 am on the NSE.
Marico’s current market capitalisation is ₹78,812 crore. Its shares have gained 16% over the last year.
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(Edited by : Shweta Mungre)
