Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Marico Ltd - Q2FY21 First Cut - ICICI Securities

Posted On: 2020-10-28 09:22:48


(CMP - Rs. 363, MCap - Rs. 46,023 crore)

Marico's Q2FY21 numbers were in line with our expectations on the revenue & earnings front.

Q2FY21 Earnings Summary

- Consolidate revenues grew by 8.7% to Rs. 1989 crore (I-direct Estimate: Rs. 1966 crore) led by 12% growth in international business & 8% growth in domestic business. Domestic volume growth was 11% on account of slower growth in base quarter. Parachute witnessed 8% sales growth led by 10% volume growth & 2% price cut / mix change. Saffola continue to witness strong sales growth of 16% led by 20% volume growth whereas value added hair oil (VAHO) sales declined by 1% with volume growing by 4%. There has been price cut or down trading across segments

- Gross margin contracted by 163 bps given Copra prices have increased by 11% & rice bran prices have surged by 26%. The company has not taken any price hike to pass on this increase to consumers. However, contraction in gross margins was offset by 127 bps savings due to lower advertisement spends & 56 bps saving in other overheads. We believe larger part of the savings has come from lower advertisement rates during the quarter. This resulted in operating profit growth of 10.2% to Rs. 389 crore. Operating margins expanded by 25 bps to 19.6%

- Net profit increased by 7.9% to Rs. 273 crore (I-direct estimate: Rs. 285.8 crore) led by revenue growth & stable margins. The company incurred an exceptional expense for the impairment of certain unusable assets worth Rs. 33 crore. The company announced interim dividend of Rs. 3/share

Marico witnessed strong volume growth of 11% during the quarter however, It must be noted that base quarter volume growth was merely 1%. We believe the company cautiously has not increased the prices, despite certain raw material price increase, mainly to drive volume growth & capture the market share of unorganised sector. However, strong growth momentum continued in Saffola largely led by continued higher 'at home' consumption given restaurants were largely shut during the quarter & norms for HORECA (hotels, restaurants & cafes) have been only been relaxed at the end of quarter. We believe hair oil category has saturated in India & next level of growth for the company would only come from newer categories like Foods & personal care. The company has launched many new products in immunity boosting category like Honey & Chyawanprash. It is necessary to see the success of foods category to measure revenue growth & margins potential.

We will be coming out with detailed update after the conference call with the management.

Shares of MARICO LTD. was last trading in BSE at Rs.364.7 as compared to the previous close of Rs. 356.8. The total number of shares traded during the day was 225237 in over 7903 trades.

The stock hit an intraday high of Rs. 365 and intraday low of 350.1. The net turnover during the day was Rs. 80821933.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Auto Sector - Monthly Volume Round-up - Nov 20 - Reliance Securities

What do brokerages say on Burger King India Limited's IPO?

The Phoenix Mills - Potential fund infusion may usher in growth - ICICI Securities

Godrej Agrovet - Beneficiary of 60% increase in palm oil prices - ICICI Securities

Automobiles (wholesale) - Wholesale dispatches rise amidst modest retail trends - ICICI Securities

Oil & Gas - Sector Update - Dec 2020 - ICICI Direct

Phoenix Mills (Buy): Asset monetisation at favourable terms... - ICICI Direct

Aditya Makharia's views on November Auto Sales Number for November 2020 - HDFC Securities

Burger King India - IPO Review - ICICI Direct

Quant Pick - LIC Housing Finance - ICICI Direct

Tech Mahindra - Analyst Meet Update - ICICI Direct

Gladiator Stocks - Crompton Greaves Consumer Electricals - ICICI Direct

Derivatives Monthly Outlook - Nifty support at 12800 for ongoing momentum...

Quant Pick - Sun Pharmaceuticals - ICICI Direct

Monetary Policy - Expectation from YES Securities

Sector Update on Asset Management Companies - Subdued but improvement expected - HDFC Securities

Pre Monetary Policy View - Dec, 2020 - Lakshmi Iyer, President and CIO (Debt) & Head Products, Kotak Mutual Fund

Maintain REDUCE on Siemens - Smart recovery priced in - HDFC Securities

Banking Sector Credit Trends - Growth continues to moderate - HDFC Securities

Q2 FY21 GDP: Light at the end of the tunnel - YES Securities

Siemens - Q4 FY20 Result Update - YES Securities

Super action in Home Loans - SBIN, ICICIBC, AXSB, HDFC and LICHF gaining share - YES Securities

Polymer price tracker - Dec 1, 2020 - PVC prices continue to tread higher - ICICI Securities

Bajaj Finance - Company Update - Dec 2020 - ICICI Direct

Siemens Ltd - Healthy revival in orders and margins - ICICI Securities

Covid Recovery Pulse - Nov 30, 2020 - Festive positivity continues in auto retails, e-way bill generation improves...

Derivatives Weekly View (November 27): Momentum expected to continue in broader markets with Nifty support at 12800...

Derivatives Strategy - Positional Option - ICICI Direct

Preview on RBI Monetary Policy - December 2020 - Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

10 things you should know about Burger King India Limited

Views of HDFC Securities and Acuité Ratings & Research on Q2FY21 GDP Numbers

Rollover Report for November 2020 - December 2020: Angel Broking

Initiating Coverage on Godrej Properties - The housing factory - HDFC Securities

Burger King IPO - Angel Broking

Rollover Analysis - Record foreign inflows pushes Nifty to 13k - YES Securities

Ceramic tiles industry - Market share gains sustain for top branded players - ICICI Securities

Gas sector - CGD: Competition to hit margins, volumes and lead to derating - ICICI Securities

Cement - Prices resilient in Q3; consensus upgrades to continue - ICICI Securities

Specialty chemicals - Price trend in Sep-20 - ICICI Securities

Timken India - Q2FY21 Company Update - ICICI Direct

Upgrade in target price of IDFC First Bank - Angel Broking

Laurus Labs stake acquisition in Richore Lifesciences - Angel Broking

Shares of Lakshmi Vilas Bank (LVB) suspended from trading - Angel Broking

Initiating Coverage on Sundram Fasteners - Fastening growth - HDFC Securities

Astral Poly Technik - Scalability to further improve with storage tanks foray - ICICI Securities

Vardhman Special Steel - Q2FY21 Company Update - ICICI Direct

Initiating Coverage - Advanced Enzyme Technologies - ICICI Direct

L&T - Secures Large Contract - Nov 25, 2020 - Angel Broking

Alembic Pharmaceuticals - Tentative Approval for JV - Angel Broking

Drug launch by Lupin - Tacrolimus Capsules - Angel Broking



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019