BENGALURU (Reuters) – Indian consumer goods maker Marico reported a bigger-than-expected rise in quarterly profit, as a drop in input costs helped overshadow a fall in revenue due to sluggish rural demand.
Marico, home to brands including Parachute and Saffola oils, said consolidated net profit rose 15.1% to 4.27 billion rupees ($52 million) in the three months ended June 30.
Analysts, on average, had expected a profit of 4.14 billion rupees, according to Refinitiv data.
The company’s revenue fell 3.2% to 24.77 billion rupees, inline with its forecast earlier this month when it said “the anticipated pickup in rural demand remained elusive” and that it cut prices of Saffola to move piled up inventory.
That inventory adjustment helped push sales volume up 3% in the quarter.
However, Marico’s total costs fell nearly 6%, mainly led by a 16.5% fall in input costs.
That helped its margins expand to 23.2%, from 20.6% in the year-ago quarter.
The quarterly results of its domestic rivals have been mixed.
While Hindustan Unilever’s profit rose less than expected, Nestle India’s profit rose more than expected.
Marico’s shares have gained 10.7% from April to June, less than the 13.7% gain in the broader Nifty FMCG index ($1 = 82.2489 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sonia Cheema)
