Shares of cooking oil maker - Marico - jumped as much as 5.7 per cent to hit fresh 52-week high of Rs 590 after the company provided business update for second quarter of the current financial year. Marico's revenue growth was in low twenties with volume growth close to double-digits on a 2-year compounded annual growth rate (CAGR) basis, the company said in the quarterly update.
"Parachute Coconut Oil delivered in line with medium term aspirations while Value Added Hair Oils posted double-digit volume growth," Marico said.
Its edible oil business - Saffola Edible Oils had a muted quarter, largely due to volatility in edible oil prices leading to trade destocking and partly owing to lower in-home consumption. Foods business, on the other hand, continued to grow smartly and remained on course to clock Rs 500 crore in revenues this year, Marico added.
"The international business delivered double digit constant currency growth as we witnessed positive trends in all markets, except Vietnam. Vietnam, where a large part of our portfolio is of a discretionary nature, was in the grip of a severe COVID surge and stringent lockdown restrictions," the Mumbai-based company said.
"Among key inputs, copra prices corrected further, crude remained firm, while edible oil prices oscillated at higher levels. Gross margin is expected to improve marginally from the previous quarter, but will be under pressure on a year-on-year basis due to much higher input costs over the last year," Marico said.
Marico shares have so far this year advanced 47 per cent compared with 25 per cent gain in the Sensex.
As of 1:42 pm, Marico shares traded 2.35 per cent higher at Rs 571, outperforming the Sensex which was down 0.4 per cent.