FMCG firm Emami on Friday posted an 8.9 per cent year-on-year (Y-o-Y) increase in consolidated net profit for the October-December quarter (Q3FY24) to Rs 258.41 crore, driven by higher margins led by reduced input costs.
The net profit in the corresponding period last year stood at Rs 237.13 crore.
The consolidated revenue in Q3FY24 was Rs 996.32 crore, an increase of 1.38 per cent from the year-ago period.
The domestic business witnessed a flat growth. However, non-winter products grew by 5 per cent.
The international business delivered a constant currency growth of 11 per cent, the company said.
Sequentially, revenue was up by 15.19 per cent and net profit 44.76 per cent.
Emami said the third quarter witnessed subdued demand trends, particularly in rural markets.
The period was also characterised by the late onset of winter, impacting the demand for winter products.
However, due to the reduced input costs, the company reported that gross margins had enhanced, touching 68.8 per cent, reflecting a substantial expansion of 290 basis points during the quarter.
Ebitda at Rs 315 crore grew by 7 per cent, with margins expanding by 170 basis points to 31.6 per cent.
Ebitda refers to earnings before interest, taxes, depreciation and amortization.
Commenting on the performance, Harsha V Agarwal, vice chairman and managing director, Emami Limited, said the company delivered resilient performance along with substantially improved profitability with a 7 per cent growth in Ebitda and 9 per cent growth in profit after tax, despite subdued demand in the third quarter.
“Disrupted winter, weak rural demand, and continued inflationary woes impacted the winter and discretionary offtakes,” Agarwal said.
Mohan Goenka, vice-chairman, and whole-time director, Emami, said the international business posted an impressive 11 per cent growth in constant currency led by the MENAP region.
The board of directors recommended a second interim dividend of 400 per cent, translating to Rs 4 per share for the current financial year.
First Published: Feb 09 2024 | 6:02 PM IST