Mumbai: Fast-moving consumer goods major Marico on Monday reported 23 per cent surge in its consolidated net profit to Rs 388 crore for the first quarter ended June compared to Rs 315 crore in the same period a year ago.
Lower tax cost and better operating performance also boosted profitability. However, its revenue from operations fell by 11 per cent to Rs 1,925 crore as against Rs 2,166 crore in the same period.
Total expenses declined by 7.4 per cent to Rs 1,501 crore in Q1 FY21 compared to Rs 1,752 crore in Q1 FY20.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 1.3 per cent to Rs 467 crore due to 140 basis points improvement in gross margin following lower raw material cost and margin expanded 300 basis points to 24.3 per cent in Q1 FY21 due to 37 per cent cut in advertising and promotion expenses.
Domestic sales were down 15 per cent at Rs 1,480 crore over Rs 1,731 crore in the same period a year ago, impacted by disruption in supply chain due to continuing lockdown to contain the outbreak of COVID-19.
Revenue from the international business was up 2 per cent to Rs 445 crore as against Rs 435 crore in Q1 FY20.