Marico (MARICO) Q4 93/94 earnings summary

Executive summary

• FY94 sales and other income rose to Rs 237.28 crore from Rs 210.66 crore; PBT edged up to Rs 14.91 crore, while higher tax limited PAT to Rs 6.36 crore.

• Volume gains across products supported growth, while lower unit values from passing on reduced material costs moderated turnover growth to 13%.

Financial highlights

• Sales and other income were Rs 237.28 crore in FY94 versus Rs 210.66 crore in FY93; sales alone were Rs 236.44 crore versus Rs 210.32 crore.

• PBT was Rs 14.91 crore versus Rs 14.79 crore; PAT was Rs 6.36 crore versus Rs 6.19 crore. FY94 tax includes Rs 29 lakh for earlier years.

• Recommended dividend was 12% (Rs 1.20 per equity share), absorbing Rs 54 lakh; dividend on pre-bonus capital equated to 36%.

• Advertising and sales promotion expense rose to Rs 16.26 crore from Rs 7.87 crore amid competition and investment in newer brands.

Outlook and guidance

• Higher authorised capital was proposed to meet the scale of current operations and future capital requirements; management cited rapidly growing operations and increasing funding needs.

• SIL processed-food sales were expected to grow further; distribution for Revive was being expanded as consumer acceptance increased.

• Total Quality Management initiatives were expected to deliver benefits in coming years.