Emami Q3 net up 21% at Rs 115 crore

Strong winter sales, performance by power brands pushed profits higher

On the back of strong winter sales and strong performance by the power brands, FMCG major Emami has reported a net profit of Rs 115 crore in the third quarter of the current financial year compared to Rs 94.5 crore, registering a jump of 21.69%.

The firm clocked net sales of Rs 548.65 crore in the quarter under review compared to Rs 452.36 crore in the same period of the previous fiscal year.

Domestic business of the company grew by 21.7% with revenues at Rs. 465 crore in the third quarter in FY13. The growth was led by Boroplus Antiseptic cream aided by good winter season. Other power brands such as.Navranta, Zandu and Fair & Handsome also grew in line with expectations. Healthcare division comprising of the OTC, ethical and generic products registered strong growth.

The direct rural business has shown a growth of 31% during the quarter, which is now contributing around 25% of the company's total revenues.     

“All our power brands have been reporting strong and consistent performance despite various challenges of the macro-economic environment and input price pressures. With winter setting in early this year, consumer demand has been strong during this quarter which helped in maintaining a robust top-line growth.

With a sustained sales momentum, judicious price increases and effective cost management initiatives, we have been able to moderate the impact of high input costs and inflationary pressures. For the next quarter, our focus will be on pursuing similar aggressive and profitable growth strategy.” Said N H Bhansali, CEO – Finance (strategy & Business Development), Emami India.

International business stood at Rs. 48 crore showing a growth of 25% in the third quarter with Bangladesh contributing aggressive growth. Emami’s first overseas manufacturing facility started operations in Bangladesh in this quarter.