Marico posted a 40% increase in net profit in its consolidated results for Q4 ending March, 2011 on grounds of exception

Marico posted a 40% increase in net profit
Marico Ltd. posted its consolidated unaudited results for Q4 ending March, 2011 on May 2, 2011. The company"s net sales was 24% higher at Rs. 747 crore in the quarter ending March, 2011, compared to Rs. 602 crore for the same period last year.

The sales were seen higher on account of growth in revenue from consumer product segment which saw a 28% YoY growth at Rs. 713 crore for Q4, 2010-11. The net sales for the fiscal ending March, 2011 was also seen higher by 17.57% to Rs. 3128 crore compared to Rs. 2660 crore last year. This was also attributable to high growth of 18% in revenue from consumer products segment at Rs. 2920 crore for the year compared Rs. 2475 crore last year.

In the consolidated results, the company saw a 31.11% YoY increase in its total expenditure for the Q4 ending March, 2011 at Rs. 698.75 crore. Whereas, there was an 18.91% increase in the total expenditure for the fiscal ended March, 2011 Rs. 2789.3 crore, compared to Rs. 2345.7 crore in corresponding period last year.

This is mainly attributable to higher consumption of raw material for both the quarter as well as the fiscal, at Rs. 452 crore and Rs. 1440 crore compared to Rs. 239 crore and Rs. 1049 crore for corresponding periods last year, respectively.

For Q4 2010-11, the company saw a steep decline of about 43% in profit after interest but before exceptional item and tax at Rs. 39.76 crore, compared to Rs. 69.56 crore for corresponding period previous year. This was mainly because of higher expenditure and a higher interest paid this year.

The interest expense stood at Rs. 18.11 crore for the Q4, 2010-11, a 260.52% YoY increase. It was exceptional items which finally helped in increasing the Net Profit for the quarter. The exceptional item for the period was Rs. 75.51 crore compared to a negative figure of Rs. 5.74 crore for corresponding quarter last year.

The tax expense, for Q4 2010-11, increased 265% YoY, to Rs. 42.83 crore. But the PAT for Q4, 2010-11 stood at Rs. 72.44 crore, a 39% YoY growth. And the net profit after adjusting for minority interest was seen at Rs. 71.62 crore, 40% YoY growth in the same period.

For fiscal ending March, 2011 there was just a 6.5% growth the profit after interest but before exceptional item and taxes to Rs. 327.55 crore, compared to last year. This was because of higher growth of net sales in absolute terms than total expenditure.

Tax expense also 32% high for the same period at Rs. 85 crore, corresponding to last year"s tax expense. The minority interest also rose to Rs. 5 crore from previous Rs. 1.87 crore. Still the net profit for the current fiscal was 23.65% higher at Rs. 286.45 crore, compared to Rs. 231.67 crore last fiscal.

This growth was mainly because of exceptional item of Rs. 48.91 crore in the current fiscal compared to a negative figure of Rs. 9.79 crore last year.

The EPS of the consolidated result was also seen higher for both the Q4 and the fiscal ending march, 2011 at Rs. 1.17 and Rs. 4.68 compared to Rs. 0.84 and Rs. 3.84 corresponding period in previous year, respectively.

The net profit margin was higher than 9% for both the periods compared to less than 8.7% in corresponding periods last year.

Read more about: results, marico, fmcg, bse
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