Marico Q3 Review - Volume Trajectory Getting Back On Track With Margin Situation Comfortable: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Reserach Report.Marico Ltd.'s Q3 FY23 results were inline with estimates. Overall revenue/Ebitda/profit after tax growth of 2.6%/5.8%/5.8% YoY respectively, led by 8% growth in the international business and 2% in the domestic business. Company reported domestic volume growth of 4%. Gross margin expanded 120 bps YoY/ 130 bps QoQ to 44.9%, Ebitda margin expanded 60 bps YoY to 18.5% with better gross margins partially offset by higher employee costs, marketing spends and other operating spends. Key takeaways:Marico expects to deliver mid single digit volume growth in Q4 FY23 led by a low base on rural growth and benefits of price cuts in Parachute and Saffola; it continues to target sustainable gross margin of 45%, 18-19% Ebitda margin in FY23 and above 19% in FY24, with sustained advertising and promotion spends offsetting cost rationalisation initiatives, Parachute reported 2% volume growth and 6% value decline, management expects to see positive volume going forward on the back of stable pricing,Saffola franchise revenue grew 10% YoY and volume grew in low teens led by reduction in price, Value-added hair oil revenue declined 3%, with low volumes and 80 bps share gain, Saffola Foods business grew 31% YoY led by strong growth in Oats franchise (20% growth),serums continued their double-digit growth, and digital first brands now close to annual run rate of Rs 2.5 billion revenue, andinternational business grew 8% YoY, led by 13% growth in Vietnam, South Africa and Middle East and North Africa each, Bangladesh business grew 9% YoY..Click on the attachment to read the full report:.Marico Q3 Results Review - Inline Operational Performance; Expect Margins To Improve Gradually: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Marico Q3 Review - Volume Trajectory Getting Back On Track With Margin Situation Comfortable: Systematix

Mgmt expects to deliver mid-single digit volume growth in Q4 led by a low base on rural growth.

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