Marico reported its results for the first quarter of FY24 in-line with the Street estimates. Revenues de-grew marginally by 3 percent year on year to Rs 2,477 crore versus Rs 2,558 crore in the same quarter of last year.

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The earnings before interest, tax, depreciation and amortisation (EBITDA) is 8.7 percent higher at Rs 574 crore versus Rs 528 crore in the corresponding quarter of last year. EBITDA margins improved 260 bps to 23.2 percent, while in the same quarter of last year, it stood at 20.6 percent.

The net profits of the FMCG major are 16 percent higher at Rs 436 crore compared with Rs 377 crore in the corresponding quarter of last year.

The volume growth was low-single-digit due to significant trade destocking in Saffola edible oils and channel inventory adjustments in core portfolios.

The company witnessed a minor volume drop in Parachute coconut oil, low double-digit volume growth in Saffola edible oils and a flattish quarter for value-added hair oils.

However, among the newer portfolios, foods continued its strong run, while premium personal care (including the Digital-First portfolio) remained steady.

The company noted that demand trends in the FMCG sector remained stable during the quarter, although signs of improvement on a sequential basis were not clearly visible. While urban markets were steady, the anticipated pickup in rural demand remained elusive.

In the international business, Marico maintained its healthy growth momentum as it delivered high single-digit constant currency growth during the quarter, with most geographies exhibiting resilience in a volatile global operating environment.

Among key inputs, copra prices stayed in a favourable zone and edible oil prices declined sharply, while crude derivatives remained firm. As a result, the gross margin is expected to expand materially on a year-on-year as well as on a sequential basis.

The shares of Marico closed the trading session on July 28 at Rs 573 per share with gains of 3.7 percent. The stock has gained 13 percent since start of this calendar year.