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Marico Q1 net profit drops due to GST

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Mumbai – The famous oil maker Marico Ltd reported a huge drop of 11.9% in their profit, this quarter of a year. This decline had been possible due to the destocking event taking place in the rural, wholesale and canteen department areas. Marico’s profit due to this saw a fall to ₹ 235 crore. The revenue of the company suffered as well. The fall has been down to 3.5%.

The distribution trade channel of the country has been forced to reduce the inventory along with the stock taking in the month of June.

After this Marico’s profit fell to a 9% decline. This decline has occurred to the correction in the pipeline along the channels. This mainly happened in the commercial and rural areas. It has led to a massive decline in turnover ratio.

Also, it added that the northern and the southern part of the country had been hit harder than the real India. A transaction with CSD, this used to contribute 7% of the business, now has come to a stagnating position. The decline is estimated down to 15%.

Marico’s income has been ₹ 1,327 crore. This has dropped to 4.31%. The segment used to bring 77% profit for the nation.

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Anand Narayanaswamy works as a journalist based in Trivandrum, India. After unsuccessfully completing the company secretary course, Anand decided to step into software and technology route. More recently, he had a great interest in exploring about the Goods and Services Tax.

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