Marico Records Profit growth of 9% amidst strong volume growth of 14%

Marico Q2FY12 turnover of ~INR 974 crore (~USD 216.4 mio) showed a growth of ~26% over Q2FY11. A robust volume growth of ~14% in the domestic Consumer Products Business (despite price increases necessitated in H2FY11) helped achieve this healthy revenue growth. The Company continues to prioritise its consumer franchise over its margins. This consumer-centricity enabled it to sustain robust volume growth despite inflationary pressures in India.

The Company continues to prioritise its consumer franchise over its margins. This consumer-centricity enabled it to sustain robust volume growth despite inflationary pressures in India. Profit after tax (PAT) for Q2FY12 was ~INR 78 crore (~ USD 17.3 mio), a growth of ~9% over Q2FY11.

Over the years, Marico has focused on sustainable profitable growth. Q2FY12 is in Y-o-Y terms, the 44th consecutive Quarter of growth in Turnover and 48th consecutive Quarter of growth in Profits. The Board of Directors of Marico Limited at its meeting held on November 4, 2011 declared a first interim dividend of 30% on its equity share capital of ~INR 61.5 Crore.

Marico had issued a mid-quarter Information Update on September 14, 2011. Reference to that update will help better appreciation of this Information Update especially the Outlook. Marico's strategies find an echo in the Success Guru- Brian Tracy's- maxim- "The ability to discipline oneself to delay gratification in the short term in order to enjoy greater rewards in the long term is the indispensable prerequisite for success."

Turnover growth was witnessed across the Company's three business units. The Indian Consumer Products Business grew by 44% in value and 14% in volume terms. Marico's International business posted a growth of 19% after foreign exchange fluctuations and a business growth of 33%. The Kaya business collections on Same Store basis grew by 16%. Market shares continued to be healthy all across.