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FMCG major Emami on Thursday reported around a 10 per cent year-on-year (y-o-y) growth in its consolidated net profit to ₹150.60 crore for the first quarter of the current financial year, buoyed by a close to 10 per cent y-o-y jump in revenue.
The company’s net profit for the first quarter of the last fiscal year stood at ₹136.75 crore. Revenue from operations for the first quarter of this fiscal year grew 9.74 per cent y-o-y to ₹906.07 crore, compared to ₹825.66 crore for the same period last fiscal year, Emami Ltd said in a stock exchange filing.
EBITDA at ₹216 crore grew 14 per cent y-o-y during the period under review, while gross margins of 67.7 per cent improved by 230 basis points.
The company, in a statement, said domestic business witnessed growth of 10 per cent with a volume increase of 8.7 per cent, while international business grew 11 per cent on a constant currency basis.
“The quarter witnessed sequential improvement in demand trends with slight green shoots witnessed in rural demand. However, increasing food inflation continued to impact discretionary consumption. The country witnessed one of its hottest summers, boosting a healthy demand for summer products but dampening sales of non-summer products and reducing out-of-home consumption,” Emami said.
The summer portfolio delivered strong growth, fuelled by the robust performances of Navratna Cool Talc and Dermicool. The healthcare range, 7 Oils in One, The Man Company, Brillare, and BoroPlus also performed well during the quarter.
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“Modern trade, e-commerce, and institutional channels continued to post strong growth in the domestic business and our international business also witnessed impressive growth of 11 per cent in constant currency driven by the MENA and SAARC regions. As we move forward, we remain committed to delivering sustainable and profitable volume-led growth,” said Harsha V Agarwal, Vice Chairman and Managing Director, Emami Ltd.
Commenting on the results, Mohan Goenka, Vice Chairman and Whole-Time Director, said that despite a 21 per cent increase in investments behind brands, the company registered a 14 per cent growth in EBITDA.
“We continue to focus on our strategy to improve our distribution, invest aggressively in our key brands, and drive market share growth across our portfolio. With the forecast of a normal monsoon and the government’s continued focus on macro-economic growth, we expect growth to accelerate in the coming months,” Goenka added.
Emami’s scrip ended the day at ₹823.50 on the BSE, which was up by 0.72 per cent from the previous close.
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