Q3 Results 2023: Emami December quarter PAT up 6%, Tata Power net profit doubles

Q3 Results 2023: Several listed companies announced their December quarter results on Friday. Among them were Emami Q3, which reporte a 6 per cent jump in its net profit to Rs 233 crore while Tata Power's Q3 net profit nearly doubled to Rs 1,052 crore. Kansai Nerolac Paints' net profit fell 13 per cent to Rs 108.97 crore in December quarter. Here are key takeaways from the earnings reported by the company.  

Emami Q3 Results 2023: PAT up 6% to Rs 233 crore; revenue rises 1.2% to Rs 983 crore

Homegrown FMCG firm Emami Ltd on Friday reported a 6.12 per cent increase in consolidated Profit after Tax (PAT) to Rs 232.97 crore for the third quarter ended December 2022 amid contraction of gross margins due to inflationary pressure.

The company had posted a PAT of Rs 219.52 crore during the October-December quarter of the previous fiscal, Emami said in a regulatory filing.

Its revenue from operations rose 1.2 per cent to Rs 982.72 crore as against Rs 971.06 crore in the corresponding period of the previous fiscal.

"During the quarter Gross margins at 65.9 per cent contracted by 150 basis points due to inflationary pressure and a favourable portfolio mix last year. EBIDTA at Rs 294 crore declined by 14 per cent over the previous year due to the inclusion of new subsidiary costs, and strategic outlay on distribution expansion in rural, digital and modern trade channels," Emami said in its earning statement.

During the quarter, demand patterns for the FMCG sector remained "sluggish", with rural markets experiencing continued demand pressure, it said.

"Further, a warmer winter season across the country impacted sales even more," said Emami, adding that in the given macroeconomic context, it grew by 2 per cent and revenues by 1 per cent during the quarter, "translating into a healthy 3-year CAGR of 7 per cent compared to the pre-pandemic period".

Emami's total expenses were at Rs 688.47 crore, up 9.36 per cent from Rs 629.52 crore in the year-ago period.

Emami, which owns brands such as Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King, said its domestic business grew by 1 per cent during the October-December quarter.

"While rural markets remained muted, urban-centric new age channels like Modern Trade continued to grow strongly by 20 per cent and e-commerce by 45 per cent during the quarter," it said.

Modern trade and e-commerce together accounted for 18.4 per cent of domestic revenues in Q3 FY23.

The international business of the Kolkata-based firm grew by 7 per cent during the quarter.

"The growth has been mainly driven by strong performances in markets of MENA, CIS, Bangladesh & SEA," it said.

Emami Vice Chairman and Whole-Time Director Mohan Goenka said, "Notwithstanding the muted consumption patterns, our focus on innovation remains strong."

Shares of Emami Ltd on Friday settled at Rs 419.30 on BSE, down 0.76 per cent from the previous close.

Tata Power Q3 Results 2023: net profit nearly doubles to Rs 1,052 crore

Tata Power on Friday said its consolidated net profit almost doubled to Rs 1,052.14 crore in the quarter ended December 2022 compared to a year ago, mainly due to higher revenues.

The consolidated net profit of the company was Rs 551.89 crore in the quarter ended on December 31, 2021, a BSE filing showed.

Total income rose to Rs 14,401.95 crore in the quarter from Rs 11,018.73 crore in the same period a year ago.

Kansai Nerolac Paints Q3 Results 2023: net profit falls 13% to Rs 108.97 crore in December quater

Kansai Nerolac Paints Ltd on Friday reported a 13 per cent decline in consolidated net profit at Rs 108.97 crore in the December quarter, impacted by higher expenses.

The company had posted a consolidated net profit of Rs 125.32 crore in the year-ago period, it said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 1,826.81 crore as against Rs 1,810.35 crore in the corresponding period last fiscal, it added.

Total expenses were higher at Rs 1,684.74 crore as compared to Rs 1,648.39 crore in the same quarter last year.

"The quarter witnessed good demand in automotive coatings. Demand in decorative was impacted on account of early Diwali, extended monsoons and higher than normal channel stocking due to price increases during October 21 and November 21," Kansai Nerolac Paints Managing Director Anuj Jain said.

Raw material prices showed a decline during the quarter, which continued to witness a high exchange volatility with the rupee sharply depreciating further, he added.

Jain said the company was able to conclude the price increases with all its key OEMs during the reported quarter which will help partly offset the high inflation witnessed over the last two years.

Looking forward, he said, "It is expected that demand would remain healthy in the short to medium term."

Kansai Nerolac Paints said the size of the domestic paint industry is estimated at around Rs 60,000 crore as of March 2022. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry in the long run.