Brands
Q3-15: Marico marketing spends up 14%, PAT up 18%
BENGALURU: Indian consumer products company in the beauty and wellness space Marico Limited (Marico) spent 14.1 per cent more towards advertisement and sales promotion (ASP, marketing) in the quarter ended December 31, 2014 (Q3-2015, current quarter) at Rs 153.02 crore (10.5 per cent of net Total Income from Operations or TIO) as compared to the Rs 134.08 core (11.2 per cent of TIO) corresponding year ago quarter (Q3-2014), but 8.6 per cent lower than the Rs 167.47 crore (11.7 per cent of TIO) in the immediate trailing quarter (Q2-2015).
Notes: 100,00,000=100 Lakhs = 1 crore = 10 million
During the 12 quarter period starting Q4-2014 until the current quarter, the highest amount spent by the company towards ASP was in Q1-2015 at Rs 192.18 crore (11.8 per cent of TIO). The company’s highest ASP spend in terms of percentage of TIO was in Q3-2013 at 14.1 per cent (Rs 152.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 12 quarters under consideration, in terms of percentage TIO, the trend declines linearly during the same period. Please refer to Fig A below.
Marico’s TIO in Q3-2015 at Rs 1452.23 crore was 21 per cent higher than the Rs 1200.69 crore in the year ago quarter and was 1.5 per cent more than the Rs 1431.17 crore in Q2-2015. The highest TIO reported by the company during the 12 quarters under consideration was in Q1-2015 at Rs 1623.13 crore. TIO shows an increasing linear trend during this period. Please refer to Fig B below.
PAT in Q3-2015 at Rs 159.88 crore (11 percent of TIO) was 18.1 per cent more than the Rs 135.37 crore in Q3-2014 and 35.2 percent more than the Rs 118.26 crore (8.3 percent of TIO) in the previous quarter. During the 12 quarters under consideration, PAT shows an increasing linear trend both in terms of absolute rupees and in terms of percentage of TIO.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
