Shares of Marico surged by over 9% to ₹687 after the company reported its performance for Q2FY25. Market analysts see further growth potential for Marico, projecting up to a 27% upside from the current levels. The strong quarterly earnings report has made the stock a notable option in the share market investment landscape, particularly as the company’s performance aligned with pre-quarter expectations.
Growth in profit and revenue in Q2FY25
Marico reported a 20% year-on-year (YoY) increase in net profit for the second quarter, reaching ₹433 crore. Revenue from operations also rose, with a 7.4% increase YoY to ₹2,664 crore. For those considering share market investment, this performance indicates a stable growth trend in Marico’s financial outcomes for the quarter.
Price hikes impact on Parachute and Saffola Oils
Marico undertook strategic price hikes in H2, notably a 10% increase on Parachute products and a 15% increase on Saffola Oils. The impact of these hikes resulted in mid-single-digit volume growth for Parachute and a minimal impact on volume for Saffola Oils, supporting Marico’s revenue growth for the quarter. Market share gains were observed in these segments, contributing positively to the company’s performance and further indicating opportunities for share market investment.
Domestic segment volume growth and rural market outperformance
Marico recorded mid-single-digit volume growth within its domestic market, showcasing sequential improvement and outperformance in rural areas over urban segments for the third consecutive quarter. The rural market’s sustained demand highlights Marico’s penetration and adaptability across diverse consumer bases, which may be an appealing aspect for those exploring share market investment.
International business maintains a positive growth trajectory
Marico’s international segment showed stable growth, with each market contributing to an overall low growth in constant currency terms. The company’s international business is becoming a reliable source of growth, offering a steady stream of revenue. This element of Marico’s portfolio supports its overall position in the share market investment sphere, as it balances domestic and international revenue streams.
Modest growth in operating EBITDA
At the operational level, Marico posted a 5% YoY growth in EBITDA during Q2FY25, signalling steady performance. Although modest, this growth reflects stable operational cost management amidst an evolving economic climate. For share market investment, operating EBITDA can be a useful indicator of Marico’s cost efficiencies and sustainability in generating returns.
Sector demand remains stable with a positive outlook
The quarterly update also revealed stable demand across the sector, with Marico indicating expectations for future positive quarters. The steady demand trend, along with Marico’s market position in both premium and mass-market segments, highlights its resilience and potential for sustained growth. For those assessing share market investment, this demand trajectory may provide insight into Marico’s longer-term performance outlook.
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