off-the-wire

India's Marico posts 20% jump in Q4 profit on rural demand, easing inflation

Kitco Media
By Reuters
Published:
Updated:
Reuters
CHENNAI/BENGALURU, May 5 (Reuters) - Marico Ltd , home to popular brands Parachute and Saffola, reported a more than 20% jump in quarterly profit, helped by a recovery in rural demand and easing inflation. Consumer goods makers have been winding down price hikes in recent months in line with easing commodity costs, encouraging people to buy more branded products.


India's annual retail inflation eased to 5.66% in March, government data showed.


The company also pointed to early signs of a demand recovery in rural India. "The rural sector has most likely bottomed-out as the declining trend reversed in this quarter," it said.


Marico's consolidated net profit stood at 3.02 billion rupees ($37 million) for the three months ended March 31, compared with 2.51 billion rupees a year earlier. Analysts, on average, had expected the company to report a profit of 2.74 billion rupees, according to Refinitiv IBES data.


Meanwhile, the food business reported an 18% increase in sales, led by the strong demand for Saffola-branded oats and other food items. Revenue from operations rose 3.7% to 22.4 billion rupees. Rival Adani Wilmar's fourth-quarter earnings more than halved, while another peer Dabur India Ltd reported a 2% increase. ($1 = 81.6800 Indian rupees) (Reporting by Praveen Paramasivam in Chennai and Navamya Ganesh Acharya in Bengaluru; Editing by Sonia Cheema and Dhanya Ann Thoppil)

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