Although registering a good growth in the Navaratna and pain management range of products, backed by new launches, Emami Ltd posted a near 28 per cent decline in its net profit for the quarter ended March 31, 2018 at Rs 602.30 million primarily on account of write-off of Minimum Alternative Tax credit entitlement of Rs. 140 million.
The net profit during the fourth quarter (Q4) of the last fiscal year stood at Rs. 833.20 million.
Adjusted against the tax rates, the company’s total income in the quarter under review rose by over 12 per cent at Rs. 6.89 billion as against the revenue of Rs. 6.13 billion it earned in the Q4 period of 2016-17.
“The consumption environment for the industry has overall been positive with rural business chartering the growth path. We have increased our direct reach to 0.85 million outlets, which will help us in reducing our dependency on wholesale channel. International business has also done well in this quarter by achieving a growth of 37 per cent”, the company’s director, Mohan Goenka said.
As per the company, its domestic business grew by 10 per cent with its major brands like Navratna, pain management range, male grooming range, Kesh King and 7-Oils-in-One performing well. In a statement, it said that it continued to gain market share for key brands and the rural market, which accounts for 50 per cent of the company’s total turnover, outperformed the urban ones.
However, owing to aggressive advertising spends on account of new launches which increased by 3.2 times on a year-on-year basis, the EBITDA declined by three per cent at Rs. 1.73 billion. In the last quarter of the 2016-17 fiscal year, its EBITDA stood at Rs. 1.78 billion.