Marico, known for hair oil brand Parachute, said its consolidated sales grew by low single digits in the third quarter.
The three analysts on average expect the company’s revenue growth to increase to 4.7% in the October-December quarter, according to Refinitiv data, from an increase of around 3% in the previous quarter.
“Given the lower revenue growth, we expect moderate growth in operating income,” Marico said in a statement.
However, Marico expects gross and operating margins to improve this quarter as key input costs and consumer prices at major franchisees have stabilized.
While the urban and high-end categories maintained a steady pace of growth, “recovery in rural demand is not very visible as retail inflation remains at a high level,” said Marico.
Although annual retail inflation in India eased slightly in October and November, this was mainly due to lower food prices, while core inflation remained stable.
Sales volumes of Parachute hair oil rose at low figures after a “visible recovery” in December, the company said. Parachute sales fell 3% in the previous quarter.
Nonetheless, the value-added hair oils segment had a weak quarter, he added.
Marico said his Saffola vegetable oil franchise experienced double-digit growth in value.
The company’s stock has fallen about 6% since Nov. 4, when it released second-quarter results.
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