Emami posts 9.22% rise in Q2 net profit

Despite a challenging business environment in the FMCG space, Kolkata based Emami Ltd posted an increase of 9.22 per cent in its net profit at Rs 66.11 crore for the quarter ended September 30, 2016.

Its net profit in the corresponding quarter of the last fiscal year stood at Rs 60.53 crore.

The company's total income, in the period rose by 10.17 per cent to touch Rs 584.57 crore as against Rs 530.60 crore in the year-ago period.

According to the company, new launches like Fair & Handsome Face Wash, 7 Oils in One and HE Deodorants performed well.

The company continued to spend aggressively on advertisement and brand building during the quarter to strengthen its marketing efforts.

Most of its power brands like BoroPlus and Balms (Zandu and Mentho Plus) continued to maintain their leadership in with volume market shares of 73.1 per cent and 54.3 per cent respectively in Q2, whereas Navratna Cool Oil, Fair and Handsome, Kesh King and Navratna Cool Talc further increased their market share to 62.8 per cent, 64.8 per cent, 32.3 per cent and 27.8 per cent respectively.

The company's EBIDTA margins at 30 per cent also rose by 130 bps in the quarter under review mainly on account of gross margin expansion.