Marico Industries belied expectations with its Q3 results and the scrip came hurtling down from its day's high of Rs 177.50 on Tuesday in the aftermath.

By 13:45 IST, the scrip of the FMCG company was a tad lower (by 0.12%) at Rs 171. It registered volumes of 3,915 shares on BSE so far.

During the afternoon, Marico Industries said Q3 ended 31 December 2002 net profit grew 10.75% to Rs 12.25 crore compared to Rs 11.06 crore in the corresponding period in the previous year. Net revenues increased by 11.15% to Rs 196.2 crore (Rs 1.96 billion) from Rs 176.51 crore (Rs 1.76 billion) in DQ 2001.

A capitalmarket.com poll of three FMCG analysts had projected Marico Industries' net profit at Rs 13.2-14.5 crore. Net revenues were projected at Rs 191-201 crore (Rs 1.91-2.01 billion).

On a consolidated basis, the company registered a 14.5% rise in net profit to Rs 13.92 crore (Rs 12.16 crore) on a 12.3% increase in net revenues to Rs 206.25 crore (Rs 2.06 billion).

Incorporated in October 1988 as Marico Foods, Marico Industries acquired its present name in October 1989. It began commercial operations in 1990 when it took over the consumer products division of Bombay Oil Industries. In September 1990, it entered into an agreement with Bombay Oil for the use of Parachute and Saffola brands. Marico also purchased an unit at Jalgaon, Maharashtra, belonging to Rasoi Industries.

Around 81% of the company's revenue is derived from raw/refined oils, 5% from hair oils and the balance 14% is contributed by the other categories. Marico's key strength, besides its ability to brand a commodity, is its distribution network. The company's products reach out through about 1.4 million retail outlets serviced by its nationwide distribution network comprising 5 regional offices, 28 carrying and forwarding agents and about 3400 distributors and stockists. The company's export market comprises largely the Middle East and Saarc countries. Marico is also present in Bangladesh through its wholly-owned subsidiary Marico Bangladesh.

The company has been able to maintain its market share despite the tough competition from other national and regional players. The company is, at present, highly dependent on its three main brands -- Parachute, Saffola and Sweekar. The growth in this category will be difficult to sustain in the long run due to increasing competition.

Promoters holds 65.14% stake in Marico Industries, while the public, institutions and foreign bodies hold 7.47%, 17.24% and 8.97% respectively.