Did Marico also face operating margin problems in the Dec-21 quarter?

Mumbai based Marico Ltd, the company behind the iconic Parachute Oil brand, saw net profit grow by a modest 1.6% to Rs.317 crore in the third quarter ending Dec-21. Total sales revenues for the quarter showed a fair degree of resilience and was up by 13.4% at Rs.2,407 crore. However, like most of the other FMCG players in the market, Marico also felt the pressure of weak rural demand and high input costs.

Marico did manage to pass on some of the costs, but in a competitive market scenario, it was tough to pass on all input cost hikes to the end customer. Some of it had to be absorbed by the company which explains the modest growth in the bottom line during the quarter. As a counter strategy; Marico expanded its distribution network, cut costs and invested in market development and brand building. Marico gained from better penetration in Q3.