Emami Q1 net profit down 34.6% at Rs 56.65 crore

However, the company's stock was trading 1.74% up at Rs 1,159.65 on BSE

FMCG firm Emami Ltd on Wednesday reported 34.59% decline in its consolidated net profit to Rs 56.65 crore for the first quarter ended June 30, 2016-17, on account of amortisation of Kesh King intangibles.

The Kolkata-based company had reported net profit of Rs 86.61 crore in the April-June quarter of the last financial year, Emami said in a BSE filing.

Its consolidated net sales during the quarter under review were up 19.88% to Rs 643.37 crore as against Rs 536.65 crore in the year-ago period.

"Profit after tax was impacted by Rs 60 crore mainly because of amortisation of Kesh King intangibles. However, cash profits at Rs 128 crore grew by 18% during the quarter," Emami said.

Emami had acquired Kesh King and allied brands in June last year for Rs 1,684 crore, which was funded through a mix of internal accruals and debt.

Emami's overall domestic business delivered a strong topline growth of 21%.

During the quarter, its international business grew by 14% despite economic challenges in overseas markets led by robust growth in Bangladesh and GCC.

Emami Director Harsha V Agarwal said: "Robust business plan and efficient cost management have helped us to meet the challenging environment to achieve a good topline growth with healthy margins. Most of our power brands including new launches like HE Deodorants, Navratna i-Cool talc, Navratna Almond Cool Oil, Emami 7 Oils in One and Fair and Handsome Instant Fairness Facewash have performed well."

Emami stock was trading 1.74% up at Rs 1,159.65 on BSE.