Re: {LONGTERMINVESTORS} Re: Marico
RAJESH DESAI
Marico dropped after reporting strong Q1 June 2012 results after the company said the healthy profit margins which the company achieved in Q1 June 2012 are unlikely to sustain during the remaining quarters of the current financial year. The stock was down 1.3% to Rs 191.45. Marico's consolidated net profit jumped 46% to Rs 124 crore on 22% growth revenue from operations Rs 1270 crore in Q1 June 2012 over Q1 June 2011. The growth in net profit was led by gross margin expansion and volume growth of 14% at a group level, the company said in a statement. Marico continues to focus on expanding its consumer franchise as is evident from this quarter's performance, the company said.
Marico said the medium to longer term outlook for all the company's three businesses remains positive. Marico said that the company has positioned itself, strategically, in emerging markets viz. India, South Africa, Bangladesh, Vietnam, Egypt and the Middle East. Marico said that in emerging markets, focus on the long term is crucial. Long term success can be ensured only through stronger brands that enjoy loyal consumer franchises, Marico said. The company has therefore chosen to prioritise expansion of consumer franchise over expansion of margins, Marico said.
Marico said its profit margins in Q1 June 2012 were higher than the band Marico intends to target. The company has decided to pass back some of the input cost benefit in Parachute to consumers and has initiated steps in select recruiter SKUs. Input prices for Saffola have remained firm, Marico said.
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai