FMCG major Emami Ltd has posted higher sales and net profit in Q2 of the current fiscal compared with the same quarter in the previous year.
The company said the decline in input costs and strong cost optimisation helped in margin expansion.
In a release, Emami said sales grew on a consolidated basis by 12.8 per cent to Rs 407 crore in Q2 of the current year. While earnings before interest, taxes, depreciation and amortisation (EBIDTA) was higher by 36.3 per cent at Rs 87 crore, the profit after tax jumped by 35.1 per cent to Rs 80 crore. The company said viewed in the backdrop of moderate growth witnessed by the FMCG sector, the company had achieved “satisfactory topline growth” and had continued to “successfully strengthen its market share” in most categories in which it was present.
It attributed the margin expansion to the easing of input prices and strong cost optimisation resulting in 36.3 per cent growth in EBIDTA.
Emami said its international business also did well with 27 per cent topline growth propelled by growth in the GCC and SAARC regions.
It re-launched Fair and Handsome with an improved formulation and new packaging. To strengthen its presence in the face wash segment, the company launched an anti-pollution face wash range under its ‘Boroplus’ brand.
Shares of Emami Ltd were trading at Rs 504.30, a gain of Rs 9, in the NSE with a trading volume of 1.40 lakh shares. The share (face value Re 1) touched a high of Rs 518 today.