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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 6.7 % in the past year, substantial increase in net sales/revenue by 16.02 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -19.57 %, Marginal increase in other income during this quarter, up by 146.67%.
- Profit over the Year and quarter: Significant improvement in profitability for Marico Limited. Notable increase of 8.72 % in net profit Year to Year, Marico Limited’s profitability increased by 48.13 % in this quarter.
- EPS over the Year and quarter: EPS increased by 9.09 % Year to Year. EPS increased by 46.34 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2477 Cr | Rs. 2278 Cr | Rs. 2643 Cr | + 16.02 % | + 6.7 % |
| Expenses | Rs. 1903 Cr | Rs. 1836 Cr | Rs. 2017 Cr | + 9.86 % | + 5.99 % |
| Operating Profit | Rs. 574 Cr | Rs. 442 Cr | Rs. 626 Cr | + 41.63 % | + 9.06 % |
| OPM % | 23.17 % | 19.4 % | 23.69 % | + 4.29 % | + 0.52 % |
| Other Income | Rs. 46 Cr | Rs. 15 Cr | Rs. 37 Cr | + 146.67 % | -19.57 % |
| Interest | Rs. 17 Cr | Rs. 17 Cr | Rs. 17 Cr | + 0 % | + 0 % |
| Depreciation | Rs. 36 Cr | Rs. 41 Cr | Rs. 41 Cr | + 0 % | + 13.89 % |
| Profit before tax | Rs. 567 Cr | Rs. 399 Cr | Rs. 605 Cr | + 51.63 % | + 6.7 % |
| Tax % | 23.1 % | 19.8 % | 21.65 % | + 1.85 % | -1.45 % |
| Net Profit | Rs. 436 Cr | Rs. 320 Cr | Rs. 474 Cr | + 48.13 % | + 8.72 % |
| EPS in Rs | Rs. 3.3 | Rs. 2.45 | Rs. 3.59 | + 46.53 % | + 8.79 % |
Today, we’re looking at Marico Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 6.7 %. However, it did see a marginal increase of 16.02 % from the previous quarter. Expenses ticked up slightly by 9.86 % quarter-on-quarter, aligning with the annual rise of 5.99 %. Operating profit, while up 9.06 % compared to last year, faced a quarter-on-quarter increase of 41.63 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.52 %, but an expansion of 4.29 % sequentially. Other income rose by 146.67 % compared to the last quarter, despite an annual decline of -19.57 %. Interest expenses surged remarkably by 0 % from the previous quarter, yet the year-over-year increase remains at a moderate 0 %. Depreciation costs climbed by 0 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 13.89 %. Profit before tax grew annually by 6.7 % but saw an increase from the preceding quarter by 51.63 %.
Tax expenses as a percentage of profits decreased slightly by -1.45 % compared to last year, with a more notable quarter-on-quarter increase of 1.85 %. Net profit rose by 8.72 % year-on-year but experienced a 48.13 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 8.79 % but a quarterly rise of 46.53 %. In summary, Marico Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2477 Cr | Rs. 2278 Cr | Rs. 2643 Cr | + 16.02 % | + 6.7 % |
| Expenses | Rs. 1903 Cr | Rs. 1836 Cr | Rs. 2017 Cr | + 9.86 % | + 5.99 % |
| Operating Profit | Rs. 574 Cr | Rs. 442 Cr | Rs. 626 Cr | + 41.63 % | + 9.06 % |
| Net Profit | Rs. 436 Cr | Rs. 320 Cr | Rs. 474 Cr | + 48.13 % | + 8.72 % |
| EPS in Rs | Rs. 3.3 | Rs. 2.45 | Rs. 3.59 | + 46.53 % | + 8.79 % |
In reviewing Marico Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 6.7 % year-on-year growth, however, there was a minor increase of 16.02 % from the previous quarter. Expenses rose by 5.99 % compared to the previous year, with a 9.86 % increase quarter-on-quarter. Operating Profit surged by 9.06 % annually, and saw a 41.63 % increase from the last quarter.
Net Profit showed yearly increase of 8.72 %, and experienced a 48.13 % increase from the previous quarter. Earnings Per Share (EPS) rose by 8.79 % annually, however rose by 46.53 % compared to the last quarter. In essence, while Marico Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
-3
3-Year Profit
-1
5-Year Profit
6
10-Year Profit
669
Current Price
86,657
Market Cap
The financial outlook for the company under BSE code 531642 reveals a significant five-year profit of -1 percents. This marks a notable increase to -3 percents over the last three years, indicating a strong upward trend in the company's financial health during this period. However, it's important to note that recent challenges have impacted the company's performance, leading to a trailing twelve-month loss of 32 percents. This sharp decline in profitability is particularly concerning, as the company has also reported no sales across any analyzed timeframe, suggesting a highly unconventional and perhaps risky operational approach. The company's stock prices mirror this financial volatility, with the stock trading at 11 percents over the past five years but experiencing a dramatic drop to 21 percents within the last year. Over a decade, the stock price was at 14 percents, reflecting long-term concerns regarding the company's stability and future outlook. Such performance poses questions about the sustainability of the business and whether it can rebound from these recent setbacks.
With a market capitalization of ₹86,657 crore, the company’s stock is currently trading at ₹669, having fluctuated within a range of ₹720 / 486 over the years. The stock's P/E ratio of 57.1 reflects a relatively high valuation compared to its earnings, which could suggest strong future growth expectations or heightened investor demand. The company’s book value is ₹29.6, representing the total value of its assets on a per-share basis, while the dividend yield of 1.42% offers a modest return to shareholders. ROCE, at 43.1%, highlights the company's efficient use of capital in generating profits, while ROE at 38.5% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 0.14 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹21.0 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 6.00 suggests moderate financial strength, while the Graham Number, pegged at ₹88.4, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 22.6 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
