Emami Q3 result: Profit up at 7% to Rs 279 cr, revenue rise to Rs 1,049 cr

Home-grown FMCG major Emami Ltd on Monday reported an increase of 7.03 per cent in profit after tax at Rs 278.98 crore in the third quarter ended December 2024, helped by a healthy volume growth in core business.

The company had posted a PAT (profit after tax) of Rs 260.65 crore in the October-December quarter a year ago, according to a regulatory filing from Emami.

Emami's revenue from operations was up 5.33 per cent to Rs 1,049.48 crore during the quarter under review. It was at Rs 996.32 crore in the corresponding quarter.

"The company continued to deliver profit-led growth, with improved margins across the board. Gross margins expanded by 150 basis points to 70.3 per cent," said Emami in its earnings statement.

EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 8 per cent to Rs 339 crore in the December quarter, with margins expanding by 70 basis points, it added.

About the demand trends, Emami said the macroeconomic environment during the reporting quarter presented a mixed bag of challenges and opportunities.

"Urban demand faced headwinds, influenced by rising food inflation and liquidity constraints in retail and wholesale trade channels. Conversely, rural demand showcased resilience, buoyed by favourable monsoon conditions and a robust harvest, providing a silver lining amidst market uncertainties," it said.

However, the delayed onset of winter impacted seasonal categories, adding another layer of complexity to an already dynamic market environment, Emami added.

"Despite these macroeconomic headwinds, the company reported a robust growth of 9 per cent in its core domestic business, driven by a healthy volume growth of 6 per cent," said the Kolkata-headquartered firm.

Key brands such as the healthcare range and BoroPlus delivered a strong growth despite the challenges posed by delayed and mild winters. Navratna and the pain management portfolio showcased remarkable resilience, achieving growth in the low single digits.

Emami's total expenses were at Rs 710.79 crore, up 4.3 per cent year-on-year in the December quarter of FY25.  ALSO READ: Coal India Q3 results: Profit drops 17% to Rs 8,506 cr, dividend declared

Total income, which includes other revenue, was up 5.07 per cent to Rs 1,064.41 crore.

Meanwhile in a separate filing, Emami informed that its board of directors declared a second interim dividend of 400 per cent, which is Rs 4 per share for FY25.

"This follows the first interim dividend of 400 per cent, also amounting to Rs 4 per share, declared in Q2. With this, the cumulative dividend payout for FY24 stands at an impressive 800 per cent, equivalent to Rs 8 per share," it said.

Commenting over the results Vice Chairman and Whole-Time Director Mohan Goenka said FY25 is shaping up to be a promising year as Emami continues to deliver profit-driven growth, achieving improved margins across the board.

"EBITDA increased by 8 per cent during the quarter, with margins expanding by 70 basis points underscoring our strong focus on operational excellence. The strategic rebranding of Fair and Handsome to Smart and Handsome, inspired by deep consumer insights coupled with strategic initiatives for skin care and haircare brands offers significant growth potential," he said.

Shares of Emami Ltd on Monday settled at Rs 534 on BSE, down 17 per cent from previous close.