Marico (MARICO) Q4 95/96 earnings summary

Executive summary

• FY96 total revenue reached Rs 350.04 crore, up 23% YoY; PBT was Rs 29.69 crore and PAT Rs 21.19 crore, including a Rs 2.86 crore extraordinary depreciation write-back.

• Excluding extraordinary income, PBT rose 41% and PAT rose 55%; all product groups recorded higher sales.

Financial highlights

• Sales and other income increased to Rs 350.04 crore from Rs 284.39 crore; operating expenses were Rs 313.52 crore, including Rs 188.88 crore cost of materials.

• PBT before extraordinary income rose to Rs 26.82 crore from Rs 19.07 crore; reported PBT was Rs 29.69 crore and PAT Rs 21.19 crore.

• Excluding the Rs 2.86 crore depreciation write-back, PBT growth was 41% and PAT growth was 55% YoY; reported PBT and PAT growth were 56% and 79%.

• Net cash from operating activities was Rs 2.37 crore, versus Rs 7.66 crore in FY95; fixed-asset purchases were Rs 13.16 crore.

Outlook and guidance

• Capacity expansion proposals for Parachute, Saffola and Sweekar were under evaluation as production and sales growth could require additional capacity.

• Distribution restructuring and a stronger sales organization were intended to deepen market penetration and improve service; further investment in IT and decision-support systems was contemplated.

• HR investments were to be tailored to a rapidly changing market and intensifying competition.