MARICO Archives

L&T reports 45% YoY decline in net profit

Larsen & Toubro (L&T) reported a 44.73% year-on-year (YoY) decline in consolidated net profit at Rs 1,410.29 crore, for the quarter ended September (Q2). The company’s revenue from operations has declined by 12.15% YoY to Rs 31,034.74 crore, during the same period. L&T’s Board of Directors has approved a special dividend of Rs 18 per share.

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SBI signs $1 billion loan agreement with Japan Bank for International Cooperation

State Bank of India (SBI) has signed a loan agreement of $1 billion (~Rs 7,403 crore) with the Japan Bank of International Cooperation (JBIC). The loan will provide funds for manufacturers, suppliers, and dealers of Japanese automobiles in India. JBIC is a public financial institution and export credit agency, that promotes the overseas development of Japanese resources.

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Axis Bank Q2 Results: Net Profit at Rs 1,682 crore

Axis Bank Limited has reported a net profit of Rs 1,682.67 crore, for the quarter ended September (Q2). The bank’s net interest income (NII) has increased by 20% YoY to Rs 7,326.07 crore, during the same period. NII is the difference between the interest earned by a bank on its loans, and the interest it pays to depositors.

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Marico Q2 Results: 8% YoY rise in Net Profit

Marico Limited reported a 7.9% year-on-year (YoY) increase in consolidated net profit at Rs 273 crore, for the quarter ended September (Q2). The FMCG firm’s revenue from operations increased by 8.74% YoY to Rs 1,989 crore, during the same period. The company has stated that it had gained a strong growth in domestic sales in Q2.

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Flipkart-Aditya Birla Fashion proposed deal violates FDI policy: CAIT

The Confederation of All India Traders (CAIT) has raised objections over the proposed deal between Aditya Birla Fashion & Retail and Flipkart. CAIT has alleged that the deal violates the Government’s foreign direct investment (FDI) policy. According to the deal, Aditya Birla Fashion has plans to raise Rs 1,500 crore by issuing a 7.8% stake to Walmart-owned Flipkart Group.

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Tata Elxsi secures global services deal from Aesculap AG

Tata Elxsi has been selected as the global engineering services partner by Aesculap AG. It has opened a dedicated Global Engineering Center (GEC) for Aesculap AG, as part of its strategic multi-year engagement. Aesculap AG is owned by Germany-based B. Braun, one of the world’s leading manufacturers of medical devices.

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Piramal Enterprises Q2 Results: 14% YoY increase in net profit

Piramal Enterprises Limited reported a 13.95% year-on-year (YoY) increase in consolidated net profit at Rs 628.31 crore, for the quarter ended September (Q2). The company’s consolidated revenue from operations stood at Rs 3,301.84 crore, during the same period. The company has stated that these results have been achieved through strong sales in the pharma segment.

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TCS selected as strategic partner for Belgium-based AG

Tata Consultancy Services (TCS), on Wednesday, announced that it has been selected as a strategic partner by Belgium-based insurance company, AG. TCS would help to improve AG’s digital channels and modernize its IT systems. The global Innovation ecosystem and experience of TCS will be used to upgrade AG’s insurance services.

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Titan reports 38% YoY decline in net profit to Rs 199 crore

Titan Company Ltd. has reported a 37.8% year-on-year (YoY) decline in standalone net profit to Rs 199 crore, for the quarter ended September (Q2). The watch and jewellery maker has posted a 1.72% YoY decline in total income at Rs 4,389 crore, during the same period. The share price of Titan saw a fall of 1.12%, and closed at Rs 1,218 on the NSE today.

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RBL Bank Q2 Results: Profit rises 165% YoY to Rs 144 crore

RBL Bank Limited reported a 165% year-on-year (YoY) increase in net profit to Rs 144.2 crore, for the quarter ended September (Q2). The bank’s net interest income (NII) increased by 7.3% YoY to Rs 932.1 crore, during the same period. The share price of RBL Bank saw a rise of 2.48%, and closed at Rs 179.50 on the NSE today.

Read more here.

Indian FMCG firm, Marico, posted a 23.17% year-on-year rise in net profit at Rs 388 crore for the quarter ended June 30. A net profit of Rs 315 crore was declared last year for the same quarter (April-June). Total revenue generated fell this year from Rs 2166 crore to Rs 1925 crore.

	Q1 FY21	Q4 FY20	Q1 FY20	YoY	QoQ
Revenue	1925	1496	2166	-11.12%	28.6%
Net Profits	388	194	315	23.17%	100%

Values in Crore Rupees.

Even though there has been a YoY fall in revenue, net profits for the company has risen sharply, beating all the market estimates. The growth in net profits has majorly because of two reasons; rise in revenue from international business and fall in total expenses. International revenue has risen from Rs 435 crore to Rs 445 crore.

With a high demand in the market, the company decreased its YoY advertising expenses by 37% which led to a higher bottom line. You can find the company’s press release here.

On the other hand, total expenses declined by 7.39 per cent to Rs 1,501 crore. At the end of this quarter, Marico acquired the remaining 55% stake in ZED Lifestyle. Thus, converting it into a wholly-owned subsidiary. “On obtaining the control, the company has re-measured the existing stake at fair value and has recognised the re-measurement gain in the consolidated statement of profit and loss in accordance with Ind AS,” said Marico.

In the past few days, Marico direct competitors Britannia and HUL also declared their Q1 FY21 results. The following graph gives an insight into how the three FMCG companies have fared against each other.

HUL reaffirmed its position as the largest FMCG company in India. Their food & refreshment segment has done really well by posting more than 50% growth in their operating income. Britannia, with the help of proper strategy, was able to launch cheaper and innovative products to meet the high demands of the market. Thus, deriving higher profits.

Even amidst the global pandemic, all three FMCG companies have actually done better than what analyst forecasted. In these tough times where several industries are facing huge losses, these FMCG companies have shown a path of how to curtail unnecessary expenses and invest in the right products so that overall contribution margin can be increased. It will be interesting to see how these companies cope in this quarter as the country is still grappled by COVID-19.