Emami Sept quarter net flat at Rs 184 crore, pre-tax profit dips 18%

Company says gross margins shrank 230 bps in Q2FY23 due to inflationary pressures and an unfavourable portfolio mix due to extraordinary high sales of pain management products last year

FMCG firm Emami posted a consolidated net profit of Rs 184.18 crore in the September quarter, marginally down from the year-ago net profit of Rs 185.27 crore.

Profit before tax at Rs 185.52 crore was down by 18 per cent year-on-year. The company said that gross margins contracted by 230 bps in Q2FY23 due to inflationary pressures combined with an unfavourable portfolio mix due to extraordinary high sales of pain management products last year.

The company also said that demand sentiment remained muted due to continued inflation, rural slowdown and liquidity pressure. Total income at Rs 855.74 crore was up by 3.76 per cent.

Harsha V Agarwal, vice chairman and managing director, Emami, said that despite a challenging business and industry environment, the first half delivered net sales growth of 10 per cent. 

“With our strong focus on cost control, distribution expansion, aggressive marketing campaigns and driving penetration, we expect to deliver double digit growth with healthy margins in the second half.   Thus, on a full year basis, we aspire to deliver double digit growth with higher EBIDTA than previous year for our core business.”