Home-grown FMCG company Emami Ltd registered 20 per cent growth in standalone net profit at ₹ 115 crore for the quarter ended September 30, 2020, as against ₹96 crore same period last year.

Revenue from operations grew by 10 per cent at ₹ 654 crore on a standalone basis during the period under review as compared with ₹ 592 crore corresponding quarter last year.

Domestic business recorded a growth of around 13 per cent. The sustained growth momentum achieved by the health and hygiene segment along with the sequential recovery in the personal care brands aided the company to post one of the strongest quarter growths in the past few years, a press statement issued by the company said.

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Rural markets

“During the quarter, rural markets continued to perform better than urban aided by Government packages, relatively lower impact of the pandemic and the consumption shift due to reverse migration of labour. All the channels posted convincing growth with e-commerce channel tripling its revenues during the quarter. Modern trade, which was impacted due to social distancing norms in the first quarter has bounced back during the quarter registering a growth of 9 per cent during the quarter,” the release said.

Health & hygiene segment

The company’s healthcare and hygiene portfolio range, which contributes to around 47 per cent of its sales grew by around 44 per cent during the quarter.

With a continued focus on the health and hygiene segment, the company continued to launch innovative products during the quarter. The contribution by the new launches to the domestic revenue during the quarter was around four per cent.

International business grew by 11 per cent led by Bangladesh and MENAP during the quarter.

“We are happy with the company’s performance as majority of our portfolio returned to healthy growth, signifying improved consumer sentiment and supply chain operations. Rural offtakes have also started looking up and modern trade is now looking positive with malls opening up. Our pain management portfolio has performed exceedingly well along with Kesh King, which has achieved its highest ever quarter sales. We continue to undertake stringent cost control measures and are very optimistic of sustaining the growth momentum in the future,” Mohan Goenka, Director, Emami, said in the release.

On a consolidated basis, revenue from operations grew by nearly 11 per cent at ₹ 735 crore (₹ 660 crore), while net profit increased by 23 per cent to ₹ 118 crore (₹ 96 crore).

Stringent cost control measures and benign raw material prices helped the company clock a good growth in both profits and margins. While EBIDTA grew by 33 per cent, EBIDTA margins at 35 per cent grew by 570 basis points, the release said.

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