Emami Q2 net rises by 16 %, beats estimates

Company's net sales rose by 20.4% at Rs 489.60 cr in the quarter

FMCG major Emami reported a net profit of Rs 92.76 crore in the the second quarter of the current fiscal, a rise of 16% from Rs 79.96 crore in the same period a year ago.

The result was marginally higher than street expectations.

The company's net sales rose by 20.4% at Rs 489.60 crore in the quarter showing a growth of 20.4% from Rs Rs 406.74 crore in the corresponding quarter of last financial year.

The growth in net sales was driven due to an extended summer with the company's power brands like Navratna Cool Oil and Cool Talcum powder registering double digit growth. Navratna Cooling Oil gained 940 bps with a volume market shares at 67.6%.

Emami has launched a number of products like 'HE' Deodrant, Fair and Handsome Instant Fairness Facewash, Emami 7 Oils in One Damage Control Hair Oil and Zandu Balm Ultra Power.

In June, the company aquired She Comfort from Royal Hygiene Care Pvt Ltd to boost its presence in the personal care segment.

"Our new launches, including HE Deo, have been received extremely well by our consumers which is positively encouraging. The products have started making significant contribution in generating revenues, " said Harsh Agarwal, director, Emami Limited.

Despite spending on advertisment increasing substantially in order to market its new launches, the company's operating margin increased by 29.6%.

While domestic business has been growing at a pace of 18.4%, due to better customer sentiment, international business also grew by 33% led by increased demand in the SAARC countries, the company said in a statement.

The company plans to further increase its rural penetration. Emami shares rose by 0.20% to Rs 759.40 while the benchmark Sensex closed at 29,098.17 points, up by 0.81%.