Emami net profit up 7.8% at Rs 237.13 cr, says rural demand slowing

Domestic business grows one per cent in the quarter; international by 7%

FMCG firm Emami on Friday reported a 7.8 per cent year-on-year increase in consolidated net profit to Rs 237.13 crore in Q3 FY23. Net profit was Rs 219.97 crore in the year-ago period.

Revenues from operations grew 1.2 per cent to Rs 982.72 crore. The company attributed the performance to slow demand pattern in the FMCG sector, particularly in rural markets. A warmer winter hurt sales.

Emami’s EBITDA at Rs 294 crore contracted 14 per cent due to input costs, inclusion of new subsidiary costs and strategic outlays on distribution expansion in rural, digital and modern trade channels.

The company’s domestic business grew one per cent in the quarter. While rural markets remained muted, urban new-age channels grew 20 per cent and e-commerce by 45 per cent during the quarter. International business grew by 7 per cent during the quarter, Emami said.

Harsha V Agarwal, Emami’s vice chairman and managing director, said the business is challenging due to high inflation, consumption slowdown, poor rural growth and a warmer winter. “In the given circumstances, we have delivered a satisfactory performance with a 7 per cent revenue growth on a 3-year CAGR basis in Q3FY23,” he said.

Mohan Goenka, vice chairman and whole-time director, Emami Limited, said, “Notwithstanding the muted consumption patterns, our focus on innovation remains strong.” He also said that the international business reported a seven per cent quarterly growth despite tough market challenges in Bangladesh, Nepal and Sri Lanka.