After posting dismal results
in the first quarter of the current fiscal year, Emami Ltd
bounced back by posting a 49 per cent increase in its net profit
at Rs 99 crore for the quarter ended September 30, 2017 while net sales
surged by nearly seven per cent at Rs 628 crore.
of the company was Rs 66 crore in the same quarter of the previous fiscal year.
While the company's domestic business grew by 14 per cent in the period under review, international business, which has been under stress for quite some time, bounced back, growing by 22 per cent. The growth in this business was led by the SAARC, Africa and CIS regions.
Nevertheless, destocking in canteen stores, department and wholesale channel disruption continues, which Mohan Goenka, the company's director, expects to be over in the next 1-2 financial quarters.
"After a challenging first quarter faced with GST
apprehensions resulting in substantial wholesale destocking in the second quarter, we have recovered significantly. The worst seems to be getting over," he said.
Abneesh Roy, senior vice president of institutional equities at Edelweiss Securities opined that Emami Ltd
embarked on a cost rationalisation drive resulting in its other expenditure overhead going up by only 4.3 per cent which helped push the company's Earnings Before Interest, Tax, Depreciation and Amortisation (Ebitda) by 15 per cent with the Ebitda
margin expansion of 208 basis points.