Emami Ltd, a leading FMCG company, announced a notable 11.88% increase in consolidated net profit, reaching INR 260.65 crore for the December quarter of the fiscal year 2023-24. This growth was primarily driven by enhanced margins resulting from lower input expenses.
As per Emami’s regulatory filing, the company had recorded a net profit of INR 232.97 crore in the October-December period of the previous fiscal year.
During the quarter in review, revenue from operations increased by 1.38%, reaching INR 996.32 crore, compared to INR 982.72 crore in the corresponding period.
The domestic business revenue remained flat, while non-winter products saw a 5% growth. Additionally, the international business exhibited a constant currency growth of 11%, as reported by the Kolkata-based firm in its earnings statement.
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Regarding margins, Emami said that due to reduced input costs, the company experienced an improvement in gross margins, reaching 68.8 per cent, reflecting a substantial expansion of 290 basis points during the quarter.
In the December quarter, EBITDA stood at INR 315 crore, marking a 7% increase, with margins expanding by 170 basis points to reach 31.6%.
The company’s total expenses amounted to INR 681.45 crore, reflecting a 1% year-on-year increase.
Total income stood at INR 1,013.03 crore, indicating a 2.36% increase from the corresponding period of the previous year.
“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.
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Despite facing these challenges, the company successfully navigated the dynamic business environment, showcasing resilience and achieving profit-led growth in 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.
Emami’s shares were trading at INR 487.25 each on the BSE, marking a 0.41% increase from the previous close.
