Emami Q3 PAT up 45%, led by sales growth and cost control measures

Domestic business up 16% led, by a 13% spike in volumes, as firm sees all-round growth across major brands

Emami has recorded a 45 per cent increase (year-on-year) in consolidated profit after tax after for the quarter ended December, led by an all-round sales growth across brands and cost control measures.

Profit after tax (PAT) for the quarter stood at Rs 208.96 crore compared to Rs 144.44 crore in the year ago period and Rs 118.45 crore in the previous quarter. Revenues from operations stood at Rs 933.61 crore, an increase of 14.88 per cent.

During the quarter, domestic business grew by 16 per cent led by a 13 per cent growth in volumes. Emami said that it witnessed an all-round growth across major brands; healthcare range grew by 38 per cent, BoroPlus grew by 21 per cent, Kesh King grew by 16 per cent, the pain management range grew by 12 per cent and 7 Oils in one grew by 32 per cent.

The male grooming range also recovered and posted a positive growth led by the relaunch of Fair and Handsome Range.

Rural markets – which contribute significantly to Emami’s sales – continued to perform, though growth in urban markets also picked up. The e-commerce channel grew by about 3.5x during the quarter; modern trade, too, registered a growth of 51 per cent during the quarter.

Mohan Goenka, director, Emami Limited, said, “We are optimistic to close the year not only on a positive note but expect to post a high single digit overall growth.”

Profits and margins increased significantly during the quarter on the back of cost control measures and benign raw material prices. Gross margins at 70.4 per cent grew by 210 bps while EBIDTA grew by 29 per cent; EBIDTA margins at 36.4 per cent grew by 390 bps. PAT margins at 22.4 per cent increased by 460 bps.

Harsha V Agarwal, director, Emami, said, “We are witnessing a consistent and all-round growth coming from all channels over the last two quarters and expect to continue with this growth trajectory. Most of our brands, including power brands and digital-first brands in the healthcare segment are on their growth path.”   

“International business too grew strongly by 26 per cent led by MENAP and SAARC regions during the quarter,” he added. 

The company’s ad-spends have returned to pre-Covid levels and Agarwal said that Emami would continue to invest in existing brand and categories to increase market penetration.

The company has declared a second interim dividend at Rs 4 per equity share.