Nov 2 (Reuters) - Indian consumer goods maker Marico reported quarterly profit above market expectations on Monday, helped by softening year-on-year prices of copra, a key raw material, and steady consumption demand.
The company, which makes the Saffola and Parachute brands of oils, posted a 31% jump in consolidated net profit to 5.50 billion rupees ($57.98 million) in the second quarter ended September 30.
Analysts, on average, expected 5.30 billion rupees, according to LSEG-compiled data.
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Copra is a key raw material for coconut oil and related products, making it an important cost driver for consumer goods companies such as Marico, whose Parachute coconut oil brand is a major contributor to its business
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The company had said during its quarterly update that copra prices remained at about 35% below their peak level in the second quarter
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Material costs as a percentage of revenue fell to 51.9% in the quarter, compared to 57.9% in the year-ago period, indicating easing pressure from raw material and packaging costs
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Quarterly revenue rose 13% to 38.97 billion rupees, below analysts' estimates of 39.62 billion rupees
($1 = 94.8550 Indian rupees)
Reporting by Saikeerthi in Bengaluru; Editing by Janane Venkatraman
Source: Reuters