Jan 27 (Reuters) - Indian consumer goods maker Marico reported a bigger-than-expected quarterly profit on Tuesday as consumption tax cuts helped boost demand.
The company, known for brands like Saffola cooking oil and Set Wet hair gel, posted a profit of 4.47 billion rupees ($48.74 million) for the quarter ended December 31, up from 3.99 billion rupees a year ago.
Analysts, on average, had expected a profit of 4.44 billion rupees, per data compiled by LSEG.
Domestic consumer goods firms, including Dabur, Godrej Consumer and Marico, said that demand has rebounded since the tax cuts went into effect at the end of September, following several quarters of muted urban demand.
Sales were disrupted by the tax cuts in the second quarter as consumers deferred purchases until lower prices kicked in.
Earlier this month, Marico said its premium personal care segment, which includes its Parachute brand of body lotion and Livon hair care range, outperformed its expectations.
It added that gross margins are likely to improve in the coming quarters on easing prices of copra, a key raw material for its coconut oil brand Parchute - one of its biggest revenue generators.
Overall revenue jumped nearly 27% to 35.37 billion rupees in the third quarter, aided by an 8% jump in volumes in India, its key market.
"We are optimistic of a gradual uptick in consumption trends across categories in the quarters ahead, supported by favorable macroeconomic indicators and the prospects of further stimulus in the upcoming union budget," the company said.
Meanwhile, rival AWL Agri Business, previously known as Adani Wilmar, reported higher sales for the third quarter in a business update earlier this month.
($1 = 91.7162 Indian rupees)
Reporting by Komal Salecha in Bengaluru; Editing by Sonia Cheema
Source: Reuters