Marico Q1 Review – Saffola Continues Stellar Performance: Dolat Capital

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Marico Ltd.’s Q1 FY21 revenues and Ebitda came in line, adjusted profit after tax was below our estimates.

India business posted 35% revenue growth with 21% volume increase (down 14% in Q1 FY21).

Value added hair oils grew 35%/34% in value/volume terms respectively on a weak base, with volume market share gains.

Saffola franchise continues to outperform with 60/24% value/volume growth.

The performance was encouraging considering unfavourable base.

Gross margin contracted 760 basis points during the quarter due to sharp increase in copra prices.

Marico has implemented ~9/50% price hike in parachute/saffola during past couple of quarters to mitigate inflation.

Click on the attachment to read the full report:

Dolat Capital Marico Q1FY22 Result Update.pdf


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