Emami Ltd has posted a 33 per cent drop in consolidated PAT at ₹61.34 crore during the second quarter ended September 30, 2015, from ₹91.52 crore in the corresponding period last year.

In a note to the accounts, the company said that amortisation of Kesh King trademarks / brands acquisition cost of ₹60.87 crore was charged against profits during the quarter. Emami acquired the Kesh King’s entire assets on June 12 for ₹1,684 crore.

Naresh H Bhansali, CEO (Finance, Strategy and Business Development), explained that the intangible assets of Kesh King were valued by an independent valuer.

The useful life of the assets has been determined at five and 10 years. Based on the valuation, the amortisation would be spread over two timeframes pro-rata.

“The amortisation of Kesh King intangible assets cost every quarter in the first five years would be at ₹60.87 crore. The management has decided that for the next five years, the amortisation figure would be ₹22.5 crore every quarter,” Bhansali said.

Emami’s Q2 consolidated turnover at ₹575 crore, however, grew 17.4 per cent over the corresponding period.

Harsha V Agarwal, Director, said: “Our bottomline and EBIDTA margin have improved due to lower input cost and cost reduction initiatives. The healthcare range has continued its robust growth led by the stellar performance by Zandu Pancharistha. This competitive performance was delivered despite the subdued consumer sentiment and an untimely monsoon.”

Emami’s international business grew by 11.5 per cent during the second quarter.

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