Marico (MARICO) Q4 91/92 earnings summary

Executive summary

• FY ended 31 March 1992 sales grew 51% to Rs 160 crore from Rs 106 crore, with growth across all product groups; inflation in raw-material costs and higher working-capital interest pressured margins.

• No dividend was recommended; profits were retained to support operations and strengthen the financial structure.

Financial highlights

• Sales were Rs 159.66 crore vs Rs 105.97 crore; profit before tax was Rs 6.17 crore vs Rs 4.54 crore.

• Profit after tax was Rs 2.85 crore vs Rs 2.44 crore; tax provision was Rs 3.32 crore vs Rs 2.10 crore.

• Interest expense rose to Rs 1.86 crore from Rs 1.27 crore; depreciation was Rs 0.27 crore vs Rs 0.12 crore.

• Rs 4 crore was transferred to general reserves; closing profit and loss balance was Rs 1.25 crore.

Outlook and guidance

• Proposed shareholder resolutions would raise authorised share capital from Rs 1 crore to Rs 5 crore to support business scale and future capital needs.

• A Palghat raw-oil project was planned, with production targeted before the end of FY 1992-93.

• Shareholder approval was sought to mortgage or charge assets to secure term loans and debentures up to Rs 15 crore, plus related interest and costs.