Homegrown FMCG player Emami Ltd has said it would not be “very aggressive” with price increases for this fiscal on the assumption that stable input prices would sustain.

“We will not be very aggressive in terms of price increases for this fiscal. We are expecting Ebitda margin expansion despite less price increases,” said Mohan Goenka, Vice-Chairman and Whole-Time Director, Emami Ltd, during the Q4FY24 investors’ conference call.

Goenka said price hikes would not be more than 2-2.5 per cent in FY25.

Q4 net edges up

Emami reported a 3.62 per cent year-on-year rise in its consolidated net profit to ₹146.75 crore for Q4FY24. Revenue from operations for the quarter grew 6.61 per cent y-o-y to ₹891.24 crore. Its domestic business grew by 8 per cent, while volume growth was 6.4 per cent y-o-y during the fourth quarter. Ebitda margin at 23.7 per cent contracted by 25 basis points y-o-y, affected by higher advertising and promotional (A&P) spends.

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The company is looking to enhance the new-product-launch intensity going ahead. “Lot of new launches are in the pipeline which will happen in the next two quarters,” Goenka added.

New products

During the fourth quarter last fiscal, the company launched Nature First healthy radiance range under the Fair and Handsome brand. It also introduced four digital first launches under the Zanducare D2C portal.

Emami’s portfolio includes power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King.

On Friday, the company scrip opened at ₹607.75 apiece on the BSE, against Thursday’s close of ₹611.80. At 1:30 pm, the stock was trading at ₹618.45.

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