FMCG firm Marico on Friday reported 6.82 per cent decline in consolidated net profit at Rs 191.64 crore for the October-December quarter on account of lower income due to demonetization.
The company had posted a net profit of Rs 205.68 crore in the corresponding period of the previous fiscal.
Total income from operations fell by 0.92 per cent to Rs 1,416.71 crore for the third quarter of the current fiscal as against Rs 1,530.29 crore in the year-ago period, Marico said in a BSE filing.
According to PTI, in an information update for investors, Marico said: “Third quarter witnessed an unprecedented event demonetization … The consequent cash crunch severely impacted wholesale and rural trade.”
“While there has been some impact on consumption, significant decline is attributed to pipeline reduction across channels”, it added.
PTI quoted MD and CEO of Marico, Saugata Gupta as saying: “While the operating performance for the quarter was below par, we remain optimistic about a near term recovery in volumes. We believe that it is important not to get distracted by short term disruption caused by demonetization. We will think beyond the immediate quarters and strategise for long term value creation.”
During the quarter, Marico’s India business declined by 4 per cent over the corresponding period of the previous fiscal. While, its international business grew by 2 per cent in constant currency basis.
In a separate filing, Marico said the company has declared a second interim dividend of Rs 2 per equity share for 2016-17 fiscal.
Shares of Marico closed 1.18 per cent down at Rs 255.30 apiece on BSE on Friday.