Marico (MARICO) Q4 90/91 earnings summary

Executive summary

• First year of commercial operations followed the consumer-product business transfer effective 2 April 1990; turnover reached Rs. 106 crore and profit after tax was Rs. 2.44 crore.

• Parachute and Saffola continued to grow; Sweekar sunflower oil launched nationally, while Hair & Care moved from test launch to national launch in the current year.

Financial highlights

• Sales were Rs. 105.83 crore; other income was Rs. 0.14 crore, bringing total income to Rs. 105.97 crore for FY 1990-91.

• Profit before tax was Rs. 4.54 crore; tax provision was Rs. 2.10 crore and profit after tax was Rs. 2.44 crore.

• Closing profit carried forward was Rs. 2.40 crore; prior-year figures are not directly comparable because there was no manufacturing activity in that period.

Outlook and guidance

• Additional refined edible-oil capacity at Jalgaon was planned for the forthcoming financial year; an intent letter had been issued to the principal equipment manufacturer.

• The board was evaluating locations for raw-oil manufacturing facilities before proceeding with remaining project phases.

• Sweekar was expected to contribute more to sales in coming years as consumer awareness of health-based oils increased.