Q2 2025 Marico Ltd Earnings Call Transcript
Key Points
- Marico Ltd (BOM:531642) reported stable demand trends with rural areas outpacing urban growth for the third consecutive quarter.
- The company achieved a sequential uptick in domestic volume growth, with more than 80% of the business gaining or sustaining market share.
- Project SETU has been successfully extended to 10 states, aiming to transform the long-term potential of Marico's GT sales infrastructure.
- The food segment surpassed INR1,000 crore in annual run rate, driven by strong growth in Saffola and newer franchises.
- International business continues to show strong double-digit growth, with notable performances in Bangladesh, Vietnam, MENA, and South Africa.
- Urban demand faces challenges due to food inflation and muted sentiment, particularly affecting the middle and lower middle-class segments.
- Saffola edible oil experienced flattish volumes, and the recent 15% price increase could impact future volume growth.
- Value-added hair oil remains sluggish amidst persistent irrational competition, affecting the bottom of the pyramid segment.
- The company anticipates a potential 40 to 50 basis points contraction in operating margins for the full year due to higher-than-expected cost pressures.
- There is a concern about the impact of food and retail inflation trends on future demand and volume growth.
Ladies and gentlemen, good day, and welcome to Marico Limited Q2 FY25 Earnings Conference Call. We have with us the senior management of Marico represented by Mr. Saugata Gupta, MD and CEO; and Mr. Pawan Agrawal, CFO. (Operator Instructions) Please note that this conference is being recorded.
Before we get started, I would like to remind you that the Q&A session is only for institutional investors and analysts. And therefore, if there is anybody else who is not an institutional investor or analyst, but would like to ask questions, please directly reach out to Marico's Investor Relations team.
I would now hand the conference over to Mr. Saugata Gupta for his mining comments. Thank you, and over to you, sir.
Yes. Hi, good evening to all those who have joined the call and hope everyone is doing well. I would like to begin by dissecting the broader market landscape during the quarter gone by, after which I'll touch upon our performance and strategic
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