Emami Q4 results: Profit plunges 60% to Rs 142 crore, sales up 7%

Emami on Thursday reported a 60 per cent YoY plunge in consolidated profit after tax (PAT) at Rs 141.62 crore in the March quarter compared with Rs 354.11 crore in the same quarter last year. Net sales for the quarter grew  7.2 per cent YoY to Rs 816.60  crore compared with Rs 761.90 core in the corresponding quarter last year.

Emami said FMCG industry witnessed a mixed demand environment in the March quarter, as discretionary categories like personal care continued to remain muted on account of reduction of non-essential expenditure by rural consumers. 

Inflation in rural areas reached 6.8 per cent in FY23, the highest level in the previous nine years, and rural inflation surpassed urban inflation for the first time since FY18, it noted.

"Additionally, excessive rainfall in many areas of the country in March impacted the demand for summer products. Domestic business grew 5 per cent during the quarter. Excluding the sales of Healthcare and Pain
management range, which had a higher consumption during COVID period, domestic sales grew 11 per cent," Emami said.

New age channels like Modern Trade and E-Commerce continued to perform well, growing 18 per cent and 64 per cent, respectively. The contribution of the two channels to domestic sales increased to 20 per cent, up 500 basis points YoY. 

International business grew 19 per cent for the quarter. Emami said it faced high inflation, currency
depreciation and geopolitical challenges in several key markets.

"The growth was mainly driven by strong performances in markets of MENA, CIS and Bangladesh. With some moderation in input costs, gross margins at 63.1 per cent expanded by 60 bps in Q4FY23. Ebitda at Rs 200 crore grew by 22 per cent with Ebitda margins at 23.9 per cent expanding by 260 bps. Profit before Tax at Rs 148 crore also grew 51 per cent over previous year," it said.

Emami said new age channels such as modern trade and e-commerce continued to perform well, growing 18 per cent and 64 per cent, respectively. The contribution of the two channels stood at 20 per cent of domestic sales.

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