Investors gung-ho on Marico’s Q3 profit margin prospects
Further, the sharp fall in crude oil prices from the October highs is also likely to support margin expansion, as some of the inputs are crude-based derivatives. “Easing of input costs and operating leverage benefits are expected to aid margins in this quarter,” said the company in its pre-quarterly update for the December quarter on 3 January. This was on account of higher oil prices. In its pre-quarterly update, the company added that the overall volume growth in the domestic business was lower than its medium-term aspiration, while its international business was on track. The positives notwithstanding, if earnings disappoint, investors will be on a slippery slope with the hair oil maker.