Marico Ltd is better placed amid the prevailing inflationary environment compared to many of its fast-moving consumer goods (FMCG) peers on the margin front. About 50% of its raw material basket is seeing deflation in prices, the company said in the June quarter (Q1 FY23) earnings call. The price of copra, a key raw material for Marico, fell by 26% year-on-year (y-o-y) and 6% sequentially in Q1. This aided the much-awaited gross margin improvement for Marico, taking it up 401 basis points (bps) y-o-y to 45%. The drop in copra prices more than offset the inflation in other inputs such as rice bran oil and crude derivatives.
Source: Click here