FMCG firm Marico reported a consolidated net profit of Rs 84.11 crore for the third quarter ended December 31, 2011. The company had posted a net profit of Rs 69.52 crore in the corresponding period of previous fiscal.

Pinc Research in its research report expects the third quarter numers were better than expected. "Marico reported better than expected net sales growth of 29% led by 20% volume growth during the quarter."

"The benefit of price during Q3FY11 was only partially available during that quarter and hence the realisation growth in Q3FY12 is higher than our anticipation," suggests the report.

"Higher A&P spending impacted the profitability and resulted into 68 bps YoY and 45 bps QoQ decline in EBITDA margin. PAT grew by 21% to Rs 84.1 crore," it adds.

Analysts expect slight increase in Parachute hair oil volume growth assumption for FY13 and FY14 owing to strong consumer response for newly introduced 45ml and 175ml packs. We raise FY13 and FY14 estimates by 4% and 5% respectively. Pinc Research retain 24x P/E on 12-month forward earnings and increase target price to Rs 150 (earlier Rs144) and maintain 'REDUCE’ rating on the stock.