Emami net profit down 16% in Q2

FMCG major Emami Ltd on Tuesday reported a 16 per cent decrease in its consolidated profit after tax (PAT) to Rs 82.68 crore in the quarter ended September 30, of the current fiscal as compared to Rs 98.60 crore in the corresponding quarter of last financial year.

Its revenue from operations, for the quarter under review, was at Rs 628.02 crore as against Rs 627.93 crore in the year-ago period.

"Our male grooming range has performed well during the quarter. Younger brands and brand extensions have contributed significantly during this period. All our power brands have continued to gain market shares," company Director Harsha V Agarwal said.

However, the company closed the half of the year (April to September) with revenue of Rs 1,242 crore with a like-to-like growth of 9 per cent.

"Despite continued challenges like erratic monsoons, transport strike and CSD channel disruption, domestic business grew by 9 per cent," the company said in a statement.

Company's gross margins at 67.4 per cent grew by 30 basis points (bps), despite increasing prices of material costs. EBIDTA (earnings before interest, tax, depreciation and amortisation) grew by 11 per cent and cash profit grew by 10 per cent.

EBIDTA margins at 25.2 per cent grew by 110 bps and cash profit margins at 22.1 per cent grew by 70 bps.

"Our growth in the first half of FY19 has been modest. Rising input cost of key raw materials has been a challenge. Wholesale recovery has been moderate and is expected to pickup further," company's Director Mohan Goenka said.

While Modern Trade performance has been good, rural too is picking up. With erratic monsoon and winter being slightly delayed, offtakes were affected, he said.

"However, our outlook is positive and we expect to close FY19 (2018-19) in double digits," he added.

--IANS

bdc/prs