Views on Marico 3QFY2014 results - Angel Broking

Views of Mr. V. Srinivasan (Research Analyst - FMGC, Angel Broking) on Marico 3QFY2014 result:

"Marico's 3QFY2014 results were better than estimates. The company's top-line rose by 7.4% yoy to Rs. 1,198cr. On a like-for-like basis (adjusted for the kaya business, demerged w.e.f October 17th 2013) top-line growth stood at 10% yoy. Domestic FMCG business posted a revenue growth of 9%, aided largely by price hikes. Volume growth for the domestic FMCG business stood at ~3% yoy. Revenue growth of Parachute coconut oil rigid packs, value added hair oil and Saffola stood at 6% yoy, 16% yoy and 7% yoy respectively. International business posted a revenue growth of 15% (volume growth of 1%) aided by favourable exchange rate impact of 12%. Constant currency growth for international business stood at 3% yoy. Marico's OPM stood at 16.7% up 273bp on yoy basis despite the steep increase in copra prices (up 78% yoy during the quarter) due to the price hikes taken by the company. The demerger of low margin kaya business too aided the expansion of OPM on yoy basis. Bottom-line rose by 32.3% yoy to Rs. 135cr. We maintain our Buy recommendation on the stock with a Target Price of Rs. 254."

Source : Equity Bulls

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