Emami posts net profit at Rs 180 crore in September quarter

Homegrown FMCG major Emami Ltd on Monday reported a flat profit after tax of Rs 180 crore for the second quarter that ended on September 30, 2023.

The company had posted a net profit of Rs 180.13 crore in the July-September quarter a year ago, according to a regulatory filing. However, Emami's revenue from operations rose 6.28 per cent to Rs 864.87 crore during the quarter as compared to Rs 813.75 crore in the corresponding quarter.

The company's total expenses in the September quarter grew 2.07 per cent to Rs 631.20 crore. Its total income in the quarter under review increased 2.36 per cent to Rs 875.98 crore.

In the September quarter, Emami had an expansion in gross margins by 350 basis points, reaching 70.1 per cent, helped by lower raw material costs and judicious price hikes, according to a company's earnings statement.

"EBITDA soared to Rs 234 crore, showcasing an impressive 20 per cent growth, with margins at 27 per cent, an increase of 300 basis points," the company said.

During the quarter, its domestic business "witnessed a commendable 4 per cent growth with volume growth of 2 per cent, driven by channels catering to urban markets such as modern trade and e-commerce," the Kolkata-based firm said.

Its international business also "expanded by 12 per cent during the quarter, delivering a constant currency growth of 16 per cent, primarily attributed to robust performances in the SAARC and MENAP regions," it added.

"Despite macroeconomic challenges, we achieved a 6 per cent revenue growth. Notably, our gross margins expanded by 350 basis points, showcasing our operational excellence. EBIDTA soared by 20 per cent, with margins expanding by 300 basis points, underscoring our dedication to value and quality," Emami Vice Chairman and Whole Time Director Mohan Goenka said.

Meanwhile, the company's board considered and approved payment of the first interim dividend of 400 per cent, which is Rs 4 per equity share on equity share of Re 1 each for the financial year 2023-24.

"With the government's support creating favourable conditions in rural markets, we're poised for a strong second half, amplifying our market presence," Goenka said.

Shares of Emami Ltd on Monday settled 2.15 per cent higher at Rs 520.60 apiece on the BSE.

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