Marico, a leading player in the FMCG sector, is set to announce its results for the January-March quarter (Q4 FY25) today, May 2. Investors are eagerly awaiting signals on the company's profitability, volumes, and most notably, the potential for a dividend payout. In the last month, Marico's stock has increased by more than 9%, despite facing global market uncertainties. The announcement of Q4 results will shed light on the company's performance during the quarter and give further insights into its growth trajectory.

Dividend Announcement Expected

Earlier in April 2024, Marico informed the stock exchanges that its board would consider a dividend payout in its meeting scheduled for today. The company had last announced an interim dividend of Rs 3.5 per equity share in January 2024 when it released its Q3 FY25 results. Shareholders are eagerly waiting to see if the company will follow up with another dividend, especially since Marico has shown consistent growth in recent months.

Stock Performance and Market Trends

Despite a slight dip of 1.5% in the past five days, Marico's stock has gained over 9% in the last month and 10% since the start of 2025. The rise in the stock price is even more remarkable considering the volatile market conditions, driven by geopolitical tensions and inflation concerns. The company's resilience in the face of external pressures is an encouraging sign for investors.

On April 30, Marico shares closed at Rs 709 apiece, down by 0.33%. As the market reopens, all eyes will be on the company’s stock movements, especially after a closed session on May 1. Investors are keen to understand whether this growth trend will continue following the release of the Q4 FY25 results.

Q3 FY25 Recap: Strong Revenue Growth Despite Margin Pressures

In its previous quarterly results for the October-December 2023 period, Marico reported a 4.2% year-on-year increase in consolidated net profit, which reached Rs 399 crore. Revenue grew by 15%, amounting to Rs 2,794 crore. Despite the strong growth in sales, the company faced margin pressures due to rising input costs. The domestic and international businesses both showed solid performance, with domestic volume growth contributing to the positive results.

Marico has stated that it expects demand to remain stable in the coming quarters, bolstered by recovery in rural areas and government support measures. However, the company remains cautious about rising input costs, which could impact profitability. The company’s management, led by CEO Saugata Gupta, has emphasized that while the rise in input costs may have a short-term impact on margins, the long-term outlook for volume growth and double-digit revenue growth remains positive.

Looking Ahead: Focus on Growth and Operational Efficiency

Marico has indicated a steady outlook for the upcoming quarters, with a focus on volume growth and improving operational efficiencies. The company plans to leverage its strong brand presence, particularly in categories like hair care, skin care, and food products. Additionally, Marico’s international business is expected to continue benefiting from global expansion, especially in emerging markets.

While Marico’s financial health appears solid, the company faces challenges related to rising costs. However, with a well-rounded growth strategy and the expectation of a dividend payout, investors will be watching closely to see how the company navigates these challenges while continuing to drive profitability.

Conclusion:

Marico’s Q4 FY25 results will provide critical insights into its performance during a challenging period. The potential dividend payout, strong stock growth, and stable demand outlook make Marico an attractive option for investors. While rising input costs may continue to be a concern, the company's strong brand equity, growth in volumes, and focus on operational efficiency position it well for continued success in 2025. As always, investors will need to stay informed about the company's quarterly earnings calls, leadership comments, and future guidance to make informed decisions.

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