Mumbai, Aug 1 (IANS) FMCG major Marico on Tuesday reported a decline of 12 per cent in its consolidated net profit to Rs 235.94 crore for the first quarter (Q1) ended June 30.
According to the company, its India business during the quarter under review witnessed volume decline of 9 per cent against the backdrop of destocking by trade in June due to transition to the Goods and Services Tax (GST) regime.
The total income from operations of the company slipped to Rs 1,715.28 crore in Q1 — down 3.73 per cent — from Rs 1,781.78 crore reported during the same quarter of 2016-17.
“For the quarter Q1FY18, India business witnessed volume decline of 9 per cent on the backdrop of destocking by trade in June due to GST transition. However, the offtake growth was satisfactory and we saw increase in the market shares across all key franchisees,” Marico said in a statement.
“The volume decline is attributable to steep pipeline correction across channels, especially wholesale and rural, leading to a decline in the stock turnover ratios (STRs) in trade. The northern and eastern markets were impacted more than the rest of India,” it added.
On a standalone basis, the company’s net profit dipped by 15.7 per cent to Rs 198.02 crore during Q1 of 2017-18, from Rs 234.88 crore posted during the same period in the previous fiscal.
During the quarter ended June 30, the total income from operations of the company was reported at Rs 1,405.15 crore — down 4.85 per cent — from Rs 1,476.71 crore reported during Q1 2016-17.
On a closing basis, the company’s scrip on the BSE fell by 2.20 per cent to Rs 326.20 per share.