Healthy performance captured in Marico's high stock valuation

Marico reported consolidated revenue growth of 20 per cent year-on-year (Y-o-Y) during the January-March quarter (Q4) of FY25.

- DEVANGSHU DATTA

Domestic revenue surged 23 per cent Y-o-Y, while volume growth was 7 per cent. International growth stood at 11 per cent (16 per cent in constant currency growth).

Among key performers in the portfolio, Parachute coconut oil posted 22 per cent value growth with 1 per cent volume decline, due to price hikes.

Copra inflation led to an additional 8-10 per cent price rise in April 2025, bringing the total price hike to 30 per cent.

Apart from copra, vegetable oil prices rose 25 per cent in FY25. Crude oil derivatives were stable.

In Q4, revenue from value-added hair oil was up only 1 per cent, due to weakness in the mass segment. Saffola's volumes were down marginally, while its revenue was up 26 per cent.

The foods category saw 44 per cent Y-o-Y growth.

Margin pressure persists with gross margin down 300 basis points (bps) Y-o-Y to 48.6 per cent.

Ad spend increased 35 per cent with earnings before interest, taxes, depreciation and amortisation (Ebitda) margin contraction at 260 bps to 16.8 per cent. Ebitda grew 4 per cent and profit after tax (PAT) was up 8 per cent to ₹340 crore.