Marico Ltd, a leading consumer goods company, recently released its Q2FY24 financial results. The report provides a snapshot of the company’s performance, highlighting areas of growth and challenges.
Let us explore a comprehensive overview of the most important highlights:

1) Consolidated Net Profit

Marico reported a consolidated net profit of ₹360 crore for Q2FY24.

This figure represents a substantial growth of 17.3 per cent compared to the ₹307 crores reported in the same period the previous year.

However, it’s worth noting that sequentially, the net profit declined 17.5 per cent from ₹436 crores reported in the preceding quarter (Q1FY24).

2) Revenue from Operations

Marico’s revenue from operations for Q2FY24 came in at ₹2,476 crores, showing a marginal dip of 0.8 per cent compared to ₹2,496 crores recorded in the second quarter of the previous fiscal year. Quarter-on-quarter, the revenue remained flat at ₹2,477 crore in the April-June period.

3) Earnings Before EBITDA

Marico’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q2FY24 stood at ₹497 crores, marking a significant increase of 14.8 per cent from ₹433 crores in Q2FY23.

4) Margins

The company’s margin widened by 280 basis points, reaching 20.1 per cent in the September 2023 quarter compared to 17.3 per cent in the corresponding period of the previous fiscal year.

5) Expenses

The total expenses during the quarter under review came in at ₹476 crore. It is notably lower than ₹567 crore in the first quarter of FY24 and higher than ₹400 crore in Q2FY23.

6) Total Comprehensive Income

The total comprehensive income for Q2FY24 was reported as ₹337 crore. This figure is higher compared to ₹280 crore in the year-ago period but lower compared to ₹418 crore recorded in the preceding quarter (Q1FY24).

7) Dividend Declaration

Marico informed the stock exchanges that its board declared an interim dividend for FY24 at ₹3 per equity share of Re 1 each. The dividend payout record date is November 7, with payment expected by November 29.

8) Stock Performance

In the trading session on October 30, Marico’s stock settled at ₹534.50 apiece on the BSE, marking a 0.62 per cent decline compared to the previous day’s close.

Summary

Marico Ltd’s Q2FY24 results showcase a mixed performance, with notable year-on-year profit growth and margin improvement. However, the sequential decline in net profit and marginal drop in revenue from operations indicate some challenges the company may need to address in the coming quarters. The declared dividend is likely to please the company’s shareholders, and it will be interesting to watch how Marico navigates the evolving consumer goods market in the remainder of the fiscal year.