Emami Q2FY22 Results: FMCG major reports 56% rise in profit at Rs 185 crore

Kolkata-based FMCG major Emami Ltd on Friday reported a 56 per cent jump in consolidated profit after tax at Rs 185.25 crore in the second quarter ended September on the back of higher revenue and cost optimisation measures.

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The company had posted a consolidated profit after tax of Rs 118.45 crore in the second quarter last fiscal, Emami said in a regulatory filing.

Consolidated revenue from operations during the second quarter stood at Rs 788.84 crore as against Rs 734.82 crore in the year-ago quarter, it added.

Emami said its board of directors in a meeting held on Friday has declared payment of 400 per cent interim dividend at Rs 4 per equity share of Re 1 each fully paid-up for the financial year 2021-22.

During the latest September quarter, the company said,"Demand trends remained steady for most of our brands despite a high base in the previous year."

Modern trade grew by 31 per cent, while e-commerce continued its robust run growing by 2.2 times, Emami said adding in Q2 FY22, e-commerce business increased its contribution "by 210 basis points to 4 per cent of the domestic revenues."

Commenting on the performance, Emami Director Mohan Goenka said,"We are happy to have been able to maintain our growth trajectory to post a growth of 9 per cent in our domestic business, led by volume growth of 6 per cent."

Stating that the company's core portfolio of brands continued to perform well during the quarter, he said,"Despite the wane in the demand for healthcare and immunity products currently, our healthcare range and pain management range continues to witness a strong growth, with a two-year CAGR of 26 per cent and 18 per cent, respectively."

Further, notwithstanding the input cost pressure and reducing gross margins, the company has been able to maintain its EBIDTA margins with judicious cost optimisation measures, Emami Director Harsha V Agarwal said.

On the outlook, he said,"We will continue to strengthen our core brands, invest in new brands and extensions, leverage new engines of growth including new age D2C (direct-to-consumer) and e-commerce platforms to reach critical mass and remain constant in our growth trajectory."