Emami Q3 PAT up 12% to 261 crore

FMCG major Emami Ltd on Friday reported 11.88 per cent rise in consolidated profit after tax at Rs 260.65 crore for December quarter 2023-24, helped by improvement of margins due to reduced input costs.

The company had logged a net profit of Rs 232.97 crore in October-December FY23, according to a regulatory filing from Emami.

Revenue from operations was up 1.38 per cent to Rs 996.32 crore during the quarter under review as against Rs 982.72 crore in the corresponding quarter.Revenue was flat in the domestic business.

However, non-winter products grew 5 per cent. The international business delivered a constant currency growth of 11 per cent, said the Kolkata-headquartered firm in its earning statement.

On margins, Emami said due to reduced input costs, the company experienced a noteworthy enhancement in gross margins, reaching 68.8 per cent, reflecting a substantial expansion of 290 basis points during the quarter.

In December quarter, EBITDA was Rs 315 crore, higher by 7 per cent, with margins expanding by 170 basis points to 31.6 per cent. Total expenses were at Rs 681.45 crore, up 1 per cent year-on-year.

Total income was Rs 1,013.03 crore, up 2.36 per cent from the year-ago period.

"The third quarter witnessed subdued demand trends, particularly in rural markets. Moreover, the period was characterized by the late onset of winter, negatively impacting the demand for winter contextual products," it said.

Despite these challenges, the company navigated the dynamic business environment, demonstrating resilience and achieving profit-led growth during Q3FY24, it added.

"Disrupted winter, weak rural demand and continued inflationary woes impacted the winter and discretionary offtakes."

We remain committed to delivering volume-led profitable growth going forward aided by accelerated scale up of emerging channels, distribution initiatives, ongoing brand and strategic investments coupled with launch of innovative products,” Emami said.

Shares of Emami were trading at Rs 487.25 apiece on BSE, up 0.41 per cent from the previous close.