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Marico s rural urban sales grew by 3 in Q4 FY16

During the quarter ended March 31 2016 Marico posted revenue from operations of Rs 1 307 crore
Marico s rural urban sales grew by 3 in Q4 FY16

During the quarter ended March 31, 2016, Marico posted revenue from operations of Rs 1,307 crore, a growth of 7% over Q4 FY15. India business (turnover of Rs 986 crore) grew by 8.4% in volume terms and the international business (turnover of Rs 321 crore) grew by 11% in constant currency terms. The company posted an overall volume growth of 10.5% for Q4 FY16.

EBITDA at Rs 217 crore increased by 26%, while EBITDA margins continued to be healthy at 16.6%. The company has judiciously utilized the benefits of lower commodity prices in improving pricing competitiveness, advertising inputs behind core categories and new products while also improving EBITDA margins. Profit after Tax for the quarter stood at Rs 138 crore, a growth of 26%.

The India business achieved a turnover of Rs 986 crore during the quarter, a value growth of about 4% over Q4 FY15. The business continues to gain market share in more than 95% of the portfolio on 12 months MAT basis. The volume growth in India was at 8.4% for the quarter. The overall sales growth was backed by continued growth momentum in categories of Parachute Coconut Oil in rigid packs, Saffola Oil and Value Added Hair Oils (VAHO) and double-digit growth in Youth portfolio.

Marico’s rural and urban sales grew by 3% in Q4 FY16. Sales in Modern Trade (9% of the India turnover) continued the good run with growth of 17% in Q4FY16. CSD and Institutional sales (8% of the India turnover) grew at 12% in Q4FY16. The technology transformation in sales is on track and has started delivering results.

Commenting on the Q4 results, Saugata Gupta, MD & CEO, Marico Industries, said, “We continued our journey of delivering sustainable profitable growth this quarter. Deflation and severe drought conditions may make the short term growths in India a challenge. However, with prospects of a good monsoon & consumption pick up in second half of the year, we remain confident of delivering 8-10% volume growth in India and a double digit constant currency growth in International. We will stay the course on investing behind the five areas of transformation and firmly believe that the results will follow.”  

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