Marico Expects Volume Growth To Remain In Teens In Q4
Marico Ltd. intends to prioritise volumes over margin, and focus on market share gains as demand recovers after the nation began to lift lockdown curbs.
“We are on a good momentum and expect volume growth in the teens even in quarter four. Our entire focus is to drive volume growth and market share and we are okay with taking a slight margin hit. We have to cope with it [higher raw material costs] over the next couple of weeks,” Saugata Gupta, managing director and chief executive officer at the maker of blue-bottled Parachute coconut hair oil, told BloombergQuint in an interview.
The company, he said, has significantly driven a cost management programe, and this year it has accrued Rs 200 crore savings in the business.
Marico posted a 15% volume growth in its India business during the quarter ended December. Its operating margin stood at 19.5% compared with 20.4% a year ago.
- Revenue rose 16% over the year earlier to Rs 2,122 crore
- Net profit increased 13% at Rs 312 crore.
Marico’s peer Hindustan Unilever Ltd., the country’s largest consumer goods maker, reported a 4% volume growth in the reported quarter. Its net profit and revenue also rose.
Watch the full interview here: