THE WHAT? India-based FMCG group Marico has forecast that its third-quarter consolidated revenue will rise by a high-twenties percentage year-on-year, supported by easing inflation and recent tax cuts.
THE DETAILS The Saffola and Parachute owner said its performance has remained resilient despite softer urban demand, with tax changes allowing the company to reduce prices and stimulate volumes. While its cooking oils business recorded a muted quarter, Marico reported year-on-year growth in its core hair oils segment.
Saffola cooking oils and Parachute coconut hair oils together generate around half of Marico’s India revenue. The company also said its premium personal care portfolio exceeded expectations, with underlying volume growth in India remaining in the high single digits—an improvement on the previous quarter. Gross margins are expected to strengthen further as copra prices, a key input for coconut oil, continue to ease.
THE WHY? Marico’s outlook reflects a stabilising demand environment in India’s personal care and staples markets, as lower input costs and tax relief provide room for margin recovery and competitive pricing. With premium personal care emerging as a key growth driver, the results highlight shifting consumer demand dynamics and the importance of portfolio mix in sustaining growth amid uneven macroeconomic conditions.
Source: Reuters
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