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Emami share price zooms 3% on strong Q1 show

Emami share price zooms 3% on strong Q1 show

The stock ended 2.17 per cent higher at Rs 571.85 against the previous close of Rs 559.70. Market cap of the firm rose to Rs 25,419.52 crore on BSE

Emami share price zooms 3% on strong Q1 show Emami share price zooms 3% on strong Q1 show

Shares of Emami Limited rose 3 per cent to hit a fresh 52-week high of Rs 579 on BSE after the company reported a net profit of Rs 77.8 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 39.6 crore.

Revenue from operations grew 37.3 per cent to Rs 661 crore in the June-ended quarter against Rs 481 crore a year ago.

The stock ended 2.17 per cent higher at Rs 571.85 against the previous close of Rs 559.70. Market cap of the firm rose to Rs 25,419.52 crore on BSE.

It has gained 137.5 per cent in the last one year and risen 34.4 per cent since the beginning of this year. The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.

While Domestic Business grew by 42% over the previous year, it grew by 5% over last to last year despite the raging impact of 2nd wave. Further, all major brands grew handsomely by more than 50% during the quarter except for Navratna which posted growth of 21% due to lockdowns.

During the quarter, Modern trade grew by 63% and e-commerce continued its robust run growing by 3.7x. In Q1FY22, the ecommerce business increased its contribution by 300 bps to ~5% of domestic revenues.

The company introduced Navratna Therapy Range, with premium cool oils for stress relief and body massage exclusively for e-commerce channel. It also launched HE Active Range with 24-hour odor protection in the modern trade channel.

“We are very happy that despite challenges, we could post one of our most profitable quarterly results. Our profitability was not only higher than the base quarter, which was impacted by the nationwide lockdown but also much superior to the normal first quarter of FY20. While our overall revenues at Rs. 661 cr grew by 37% over Q1FY21, they were higher even over the base quarter of last to last year, i.e. Q1FY20, which we believe is robust considering the severity of the impact of 2nd wave," said Mr. Mohan Goenka, Director, Emami Limited.

"However, the overall demand since early June has once again been showing improvement with the COVID positivity rates dropping to pre-2nd wave levels. Our focus on the progress of Standalone Modern Stores as well as Project Khoj to increase footprints in rural areas is progressing steadily. We also posted record profits during the quarter despite high input cost pressure, which highlights our resilience," he added.

"We will continue to invest & focus on our Healthcare portfolio, which has been consistently performing well with a growth of 59% during the quarter. We recognise that e-commerce today has become the channel of choice for many which led to us launching our exclusive e-commerce business, Zanducare, that is growing at a rapid pace with more than one crore sessions since its launch last year," said Mr. Harsha V Agarwal, Director, Emami Limited.