Emami's June quarter profit rises 96% YoY to Rs 78 crore on lower base

FMCG firm Emami posted a 96.53 per cent increase in consolidated profit after tax (PAT) at Rs 78 crore for the quarter ended June 30, 2021, mainly on account of lower base. It was at Rs 39.5 crore in the year-ago period.

PAT margins came in at 11.8 per cent for the quarter, an increase of 350 bps. Meanwhile, revenue from operations for June quarter stood at Rs 661 crore, up 37 per cent over the same period last year.

However, PAT and revenues were lower compared to the previous March quarter due to the second Covid wave. PAT in the previous quarter was at Rs 87.73 crore and revenues at Rs 730.76 crore.

Mohan Goenka, director, Emami said that despite the challenges, Emami posted one of its most profitable quarterly results.

“Our profitability was not only higher than the base quarter, which was impacted by the nationwide lockdown, but also much superior to the normal first quarter of FY20,” he added.  

Domestic business sales of Emami grew by about 42 per cent. The company said that all major brands grew by more than 50 per cent during the quarter except for Navratna, which posted a growth of 21 per cent due to lockdowns.

Modern trade during the quarter grew by 63 per cent and e-commerce by 3.7x. In Q1FY22, e-commerce business increased its contribution by 300 bps to five per cent of domestic revenues.

“We recognise that e-commerce today has become the channel of choice for many, which led to us launching our exclusive e-commerce business, Zanducare, that is growing at a rapid pace with more than one crore sessions since its launch last year,” Harsha V Agarwal, director, Emami, said.

Emami’s international business sales grew by about 17 per cent. Barring middle eastern geographies, all other regions posted strong growth during the quarter, the company said.

The company said that the initial weeks of April witnessed sustained growth momentum, but subsequent increase in Covid cases led to a challenging phase over the month of May. While personal care products were impacted, demand for health and hygiene products was also muted compared to the first wave phase, it said.

However, Goenka said that the overall demand since early June has once again been showing improvement with Covid positivity rates dropping to pre-second wave levels.