MUMBAI: Marico today reported a 22.2% increase in consolidated net profit at Rs 62.20 crore for the third quarter ended December 31, 2009 when compared with Rs 50.90 crore in Q3FY09.

Net sales increased 7.8% to Rs 669.56 crore from Rs 621.01 crore reported in the third quarter of the previous fiscal.

Other Numbers
Operating profit up 24.8% to Rs 98.77cr vs Rs 79.14cr
Operating profit margin up 201bps to 14.75% vs 12.74%
Raw material cost down 1.1% to Rs 240.91cr vs Rs 243.64cr
Raw material cost as % of sales down 325bps to 35.98% from 39.23%
Advertisement costs up 34.5% to Rs 85.5cr from Rs 63.6cr
Employee cost up 16.2% to Rs 47.39cr from Rs 40.78cr

Segmental results	Q3FY10	Q3FY09	YoY
Consumer products	1918.16	1699.01	12.90%
Others	140.33	123.44	13.68%
Segmental profits	Q3FY10	Q3FY09	YoY
Consumer products	260.06	214.41	21.29%
Others	-10.85	-5.79	87.39%
Segmental margins	Q3FY10	Q3FY09	change in bps
Consumer products	13.6%	12.6%	0.9%
Others	-7.7%	-4.7%	-3.0%

Updated at 1000 hrs: Marico is likely to report a 18% rise in net profit for the third quarter ended December 31, 2009, at Rs 61 crore when compared with the Rs 51 crore it posted in the third quarter ended December 31, 2008, according to Bloomberg UTV estimates.

Net sales for the third quarter ended December 31, 2009, are seen up 7% at Rs 712 crore from Rs 662 crore in the corresponding quarter of the previous year.

Marico result preview (YoY)

Operating profit seen higher by 15% at Rs 136 cr vs Rs 119.03cr
Operating profit margins seen higher by 121 bsp to 19.17% vs 17.96%

Factors at play

Margins to improve at gross level due to stable and benign raw material prices
Higher ad spends by the company will mute overall margin growth
Company had taken price cuts in its flagship Parachute brand
Price cuts will curtail top line growth, but add to volume traction
Management commentary on international business and Kaya Clinics to be watched carefully
Company had recently acquired hair care brand Code 10 from Colgate