Shares of Marico Ltd. are trading with losses of over 4 per cent in early trade on Tuesday as an aftermath of the ongoing political crisis in Bangladesh. Marico shares declined as much as 4.43 per cent to Rs 642.55 apiece on the BSE.
After days of massive violent protest, the political crisis in Bangladesh escalated and Prime Minister Sheikh Hasina stepped down on Monday and fled the country for a ‘safer place’. The country’s army will now form an interim government.
Bangladesh contributes approximately 12 per cent to Marico’s consolidated revenue and accounts for around 44 per cent of the company’s international revenue. The company, in its Q1FY25 earnings presentation, said that it intends to bring down the contribution from Bangladesh to less than 40 per cent of the international revenue by the end of financial year 2027 from 51 per cent in FY22.
In its June quarter investor presentation released on Monday, Marico had disclosed that it intends to bring down the contribution from Bangladesh from 51 per cent of the international revenue at the end of financial year 2022 to less than 40 per cent by the end of financial year 2027.
Marico reported June quarter results on Monday in which it reported volume growth of 4 per cent from last year, which was in-line with expectations of 4-5 per cent growth.’
The company had stated that it expects revenue growth to keep trending higher as pricing and volume growth gradually pick up. It also plans to spend between Rs 80 crore and Rs 100 crore over the next three years to improve distribution and demand generation.
Shares of Marico are trading 3.5 per cent lower at Rs 648.95. The stock has risen 20 per cent so far in 2024.
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