Marico, a leading Indian FMCG company, reported a mixed performance for Q4FY24. Profit after tax (PAT) grew 4.9% year-on-year to Rs 320 crore, but revenue from operations remained flat at Rs 2,278 crore (1.7% YoY growth). This follows a similar trend for FY2024, with PAT up 13.6% to Rs 1,502 crore, while revenue dipped 1.1% to Rs 9,653 crore.

The positive profit growth is attributed to a significant decline (15.3%) in raw material costs due to cooler agri-commodity prices. This led to margin expansion despite an 8% increase in advertising and promotional spending. Marico's flagship brand, Parachute hair oil, saw modest volume growth (2%), while the value-added hair oil segment faced a 7% decline.

However, there were bright spots. Saffola edible oils registered mid-single-digit volume growth, and the relatively new foods business grew an impressive 24% year-on-year. This segment has grown fourfold since 2020.

Looking ahead, Marico expects a gradual improvement in its core categories and a focus on profitability for general trade partners. They also plan to expand their direct reach through "Project SETU" and drive growth in the foods and digital-first brand segments. The international business is showing positive signs with momentum regaining in Bangladesh and growth strengthening in MENA and South Africa.

Overall, Marico's profitability is on an upward trajectory, but revenue growth remains a challenge. Their focus on new channels, product categories, and international expansion may pave the way for future revenue growth.