Marico Expects Strong Q3 Revenue Growth on Tax Cuts and Lower Inflation
Marico Ltd said on Friday that it expects its consolidated revenue for the third quarter to grow in the high-twenties percentage range year-on-year, supported by easing inflation and recent tax cuts that have helped boost sales. The FMCG major, known for its Saffola cooking oils and Parachute hair oils, said the pricing benefits from the tax changes have helped it stay resilient despite softer urban demand trends.
The company reported that while its cooking oil portfolio witnessed a muted quarter, its core hair oils segment registered growth compared to last year. Together, Saffola oils and Parachute coconut hair oil contribute nearly half of Marico’s India revenue. Marico added that its premium personal care segment outperformed expectations, and gross margins are expected to improve further due to a decline in copra prices, the key raw material for coconut oil production.
Underlying volume growth in India remained in the high single digits, showing a slight improvement from the previous quarter, the company said. Marico had reported a 15% increase in consolidated revenue to ₹27.94 billion in the same quarter last year. While the company’s shares closed 0.36% lower on Friday, they have gained almost 6% since the tax revisions were implemented on September 22.
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