Kolkata FMCG major Emami Ltd is likely to report modest quarterly results for the fourth quarter of the last fiscal year as the company is expected to witness around 3-3.5 per cent year-on-year volume growth.
The Kolkata-based company is scheduled to declare its January-March results on Wednesday.
Nuvama Institutional Equities said it anticipates Emami’s consolidated revenue and EBITDA to grow 5 per cent and 1 per cent year-on-year, respectively, for Q4FY24. Net profit is expected to rise 5 per cent year-on-year during the quarter.
“India volumes are likely to grow 3 per cent y-o-y, driven by Navratna, Dermicool and Boroplus (aided by extended winter). Pain portfolio shall also do well, but male grooming and Kesh King shall be laggards. We estimate international business to grow faster than India business at 8 per cent y-o-y. Gross margins shall expand by 280 basis points y-o-y, but ad spends shall shoot up to get back growth,” Nuvama said, adding overall, EBITDA margin is expected to fall 90 bps y-o-y to 23 per cent.
According to Prabhudas Lilladher, Emami is expected to witness 3.5 per cent year-on-year volume growth for the fourth quarter of the last financial year.
“We expect volume growth of 3.5 per cent y-o-y in anticipation of good summer stocking. Segments like Fair and Handsome, and Keshking are expected to remain impacted due to low discretionary spends,” the brokerage firm said in its report.
The company reported Rs 141.62 crore consolidated net profit on revenue of Rs 835.95 crore for the fourth quarter of the financial year 2022-23. EBITDA growth was 22 per cent year over year.
On Wednesday, the Emami scrip opened at Rs 525 apiece on the BSE, against Tuesday’s close of Rs 532.20 apiece. At 12.30 pm, the stock was trading at Rs 524.70.