Revenue and Profit Growth Trends
Marico’s consolidated net sales have shown a steady upward trend, rising from ₹7,334 crores in March 2019 to ₹10,831 crores in March 2025. This represents a compound growth trajectory, with notable acceleration post-2020. The total operating income mirrors this pattern, indicating stable core business operations without reliance on other operating income.
Operating profit before depreciation and interest (PBDIT) excluding other income increased from ₹1,326 crores in March 2019 to ₹2,139 crores in March 2025. Including other income, operating profit rose to ₹2,347 crores in the latest fiscal year, underscoring improved operational leverage and income diversification.
Profit before tax climbed from ₹1,258 crores in March 2019 to ₹2,116 crores in March 2025, while consolidated net profit advanced from ₹1,114 crores to ₹1,629 crores over the same period. Earnings per share (EPS) followed suit, increasing from ₹8.64 to ₹12.63, reflecting enhanced shareholder value.
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Cost Structure and Margins
The company’s raw material costs have fluctuated, peaking at ₹5,061 crores in March 2022 before moderating to ₹4,572 crores in March 2025. Purchase of finished goods has increased steadily, indicating a strategic shift or product mix change. Employee costs and selling and distribution expenses have also risen in line with business expansion, reaching ₹831 crores and ₹1,128 crores respectively in the latest year.
Despite rising expenses, Marico has maintained robust operating profit margins, with the operating profit margin excluding other income hovering around 19.75% in March 2025, slightly below the 20.99% recorded in March 2024 but above earlier years. The gross profit margin similarly remains strong at 21.18%, reflecting effective cost management.
Profit after tax margin has been relatively stable, around 15.31% in March 2025, indicating consistent bottom-line profitability despite market and cost pressures.
Balance Sheet and Financial Position
Marico’s total assets have expanded significantly from ₹4,811 crores in March 2020 to ₹8,281 crores in March 2025, driven by growth in both non-current and current assets. Net block of fixed assets increased from ₹1,181 crores in March 2020 to ₹2,513 crores in March 2025, signalling ongoing capital investment.
Current assets rose to ₹5,083 crores in March 2025, supported by a substantial increase in current investments to ₹1,375 crores. Sundry debtors and inventories have also grown, consistent with higher sales volumes.
On the liabilities side, shareholder’s funds increased to ₹3,975 crores, while total liabilities rose to ₹8,281 crores. Notably, long-term borrowings have been reduced to zero by March 2025, reflecting a strong deleveraging trend. Short-term borrowings remain moderate at ₹379 crores.
Book value per share has appreciated from ₹23.64 in March 2020 to ₹30.81 in March 2025, reinforcing the company’s growing net worth and equity base.
Cash Flow and Liquidity
Operating cash flow has been healthy, with ₹1,363 crores generated in March 2025, though slightly lower than the peak of ₹2,007 crores in March 2021. Investing activities have seen fluctuations, with a net outflow of ₹621 crores in the latest year, reflecting capital expenditure and investments. Financing activities show consistent outflows, indicating debt repayments and dividend payments.
Net cash inflow stood at ₹93 crores in March 2025, improving from previous years, while cash and cash equivalents increased to ₹321 crores, supporting liquidity and operational flexibility.
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Summary of Historical Performance
Over the past six years, Marico has exhibited steady revenue growth, expanding its market footprint and enhancing profitability. The company’s disciplined cost control has preserved healthy margins despite inflationary pressures. Its balance sheet reflects prudent financial management, with reduced long-term debt and increased equity, while cash flow generation remains robust.
These factors collectively underscore Marico’s resilience and capacity to sustain growth in a competitive consumer goods sector. Investors may find its consistent earnings growth and improving financial metrics favourable for long-term investment consideration.
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