Emami Q3 PAT up 5% YoY to Rs 220 crore

Emami reported 5% increase in consolidated net profit to Rs 220 crore in Q3 FY22 from Rs 209 crore in Q3 FY21.

Consolidated revenue rose by 4% YoY to Rs 972 crore. Domestic business grew by 3% on a year-on-year basis.

Modern trade grew by 14% and ecommerce continued its robust run growing by 75% over previous year. In Q3FY22, the salience of these new age channels increased to 14% of domestic revenues.

International Business grew by 7% on a year on year basis. Excluding sales of Immunity & Hygiene range, International Business grew by 14% led by key geographies like Bangladesh & Sri Lanka in SAARC and other regions like Africa & SEA.

During the quarter, EBIDTA was at Rs 342 crore was flat over last year. Gross margins were at 67.4%, contracting by 300 basis points due to inflation in key raw material prices.

The board of directors of Emami has approved a buyback of up to 29,45,455 fully paid-up equity shares of the company at a price of Rs 550 per equity share, aggregating to Rs 162 crore.

The company shall utilise at least 50% of the amount earmarked as the maximum buy back size for the buyback i.e. Rs 81 crore (minimum buy back size). Based on the minimum buy back size and maximum buy back price, the company would purchase indicative minimum of 14,72,727 equity shares.

While the promoter and the promoter group held 54.21% stake in the company, remaining 45.79% stake was held by public shareholders as on 28 January 2022.

Further, the board of directors have also declared a second Interim dividend of Rs 4 per share for FY22.

Mohan Goenka, director, Emami, said: We are satisfied with the performance achieved amidst chaos and lockdown that prevailed in some form or the other during the quarter.

Various initiatives undertaken for expanding our reach have resulted in increase in rural penetration and improved distribution. Our focus on new-age channels like Modern Trade, SAMT, e-commerce and D2C business remains strong with more than 5% of our domestic revenues being generated digitally.

Harsha V Agarwal, director, Emami, said: Our performance during the quarter has witnessed a reasonable growth despite a high base. Despite inflationary pressures and rising costs, we have managed to protect our EBIDTA, which we believe is commendable in the current environment.

Our International Business has also performed well growing by 7% on a year on year basis and by 16% on a 2 year CAGR basis led by Bangladesh and few other regions.

Emami is one of India's leading FMCG companies engaged in manufacturing & marketing of personal care & healthcare products.

The scrip fell 1.68% to currently trade at Rs 500 on the BSE.

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