Homegrown FMCG major Emami Ltd reported a steady profit after tax of INR 180 crore for the second quarter ending on September 30, 2023. This marks no significant deviation from the net profit of INR 180.13 crore the company disclosed in the regulatory filing for the same period the previous year.
Nevertheless, Emami witnessed a 6.28 percent increase in revenue from operations, reaching INR 864.87 crore for the quarter, a notable upturn from the INR 813.75 crore reported in the corresponding period.
During the September quarter, the company experienced a 2.07 percent growth in total expenses, amounting to INR 631.20 crore.
The total income for the quarter under review registered a 2.36 percent increase, reaching INR 875.98 crore.
Emami saw a significant boost in gross margins during the September quarter, expanding by 350 basis points to reach 70.1 percent. This improvement was attributed to reduced raw material costs and strategic price adjustments, as stated in the company’s earnings report.
“EBITDA soared to INR 234 crore, showcasing an impressive 20 per cent growth, with margins at 27 per cent, an increase of 300 basis points,” the company said.
In the same quarter, the Kolkata-based company reported a notable 4 percent growth in its domestic business, with a 2 percent increase in volume. This growth was primarily fueled by distribution channels targeting urban markets, such as modern trade and e-commerce, as stated by the firm.
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.
At the same time, the company’s board deliberated on and sanctioned the distribution of the initial interim dividend, amounting to 400 percent or INR 4 per equity share, based on an equity share value of INR 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.
On Monday, Emami Ltd’s shares concluded the trading session 2.15 percent up at INR 520.60 each on the BSE.
