Hit by demonetisation, Emami posts flat Q3 growth

Net profit and revenue were at Rs 134 cr and Rs 726 cr respectively

Hit by muted domestic demand condition resulting from demonetisation and global challenging geo-political conditions, Kolkata based FMCG (fast moving consumer goods) company Emami Ltd posted a flat topline as well as bottomline growth for the quarter ended December 31, 2016.

Against a net revenue of Rs 724.85 crore earned during the third quarter (Q3) of the last financial year, Emami posted a topline of Rs 726 crore, implying a less than one per cent growth. Its net profit too remained flat at Rs 134.34 crore for the period under review as against the Rs 134.28 crore profit in the Q3 period of 2015-16.

"Muted performance in the third quarter is in line with our expectation because of the prevailing depressed market sentiments. However, despite lower offtakes, all our major brands have improved their market shares", the company's director, Harsh V Agarwal said adding that the winter brands such as BoroPlus and Vasocare have performed satisfactorily due to focused and targeted media campaigns and other brand initiatives.

Emami is also augmenting its manufacturing capacity by setting up a third manufacturing unit in North East under a mega project scheme at Guwahati, Assam. The total planned outlay for the project is Rs 300 crore out of which the company has already invested Rs 205 crore. The unit is expected to commence operations by FY17.