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Marico Limited Quarterly Update- Q1FY222

Marico Limited Quarterly Update- Q1FY222

Published on 09 July 2021

One of the leading FMCG companies, Marico Limited has announced its Pre-Quarterly Results update on 2nd July 2021 for the quarter ended 30th June 2021. Know what the company is highlighting and what did the company expects about its performance in Q1FY22 through this article.


Marico Limited is one of India’s leading consumer products companies in the global beauty and wellness space. During FY 2020-21, Marico recorded a turnover of about INR 80.5 billion (USD 1.1 billion) through its products sold in India and chosen markets in Asia and Africa.

Demand Outlook:

  • The company witnessed a healthy demand in the initial phase of April, which lasted until the rise in the Covid-19 case in India.
  • The rise of Covid-19 cases in India due to its Second wave resulted in several restrictions in the form of mini-lockdowns, time curbs, etc. in the country.
  • Marico witnessed less effect with the second wave of Covid-19 cases and its associated restrictions in terms of demand as the company was able to evolve its supply chains much enough that it can cope with the localized and staggered lockdowns. Allowance of Operations for Retail Stores in some states at least for some hours also proved helpful for the company.
  • The South India and West India region, which is a crucial region for the company in terms of revenue, reported lower demand as there were strict and extended lockdowns for some period.
  • The company has again started witnessing a rise in demand trend in June as the Covid-19 cases are decreasing in the country and restrictions are being lifted off.


i) India Business:

  • The Indian business of the company reported strong double-digit revenue growth of 30%.
  • Parachute Coconut Oil delivered ahead of medium-term expectations.
  • Saffola Edible Oils posted low double-digit volume growth, despite a high base.
  • Value-Added Hair Oils recovered smartly across the entire franchise, albeit on a low base, which was due to billing constraints during most of April last year.
  • The Foods portfolio revenue more than doubled year on year with the Oats franchise continuing its strong run and recent launches scaling up well in line with medium-term expectations.
  • Premium Personal Care also recovered sharply over last year but ended below pre-COVID levels. This business contributes less than 5% to the revenue of the company.

ii) International Business:

  • The International business posted constant currency growth in the low 20’s on the back of sustained momentum in Bangladesh and broad-based recovery across other markets.


Inflation in Input Prices:

  • As key input costs started easing after peaking at the start of this quarter, gross and operating margins should see significant sequential improvement in Q1 and thereafter trend towards medium-term expectations.
  • However, operating margin in the quarter will drop sharply on a year-on-year basis, due to the high base and effect of pricing-led growth.
  • This will also result in muted bottom-line growth in Q1FY22.

Near-Term Outlook:

  • On account of the appreciable Covid-19 Vaccination drive and the downfall of Covid-19 cases, the company eyes for some improvement in demand trends.
  • The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term.


  • Recently, Marico Stock marked a new 52-week high on 30th June on NSE.
  • In CY21, the stock has appreciated by more than 30% and has outperformed the Nifty100 Index.
  • As of 9th July, the stock is trading at a PE Ratio of 58.04, slightly higher than the median PE Ratio of 1-Year, 3-Year, and 5-Year.


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