You are here: Home » Companies » News
Business Standard

FMCG major Emami aims decent margin in FY22 despite hike in input cost

Presently, FMCG companies are facing inflationary pressure on the raw material inputs and some of them have even increased the prices to maintain margins.

Topics
Emami | FMCG

Press Trust of India  |  New Delhi 

emami, fmcg
In FY21, Emami's performance was impacted due to the pandemic-induced lockdown.

Homegrown major has said it intends to maintain decent margins in FY22 on the back of stringent cost control and volume led growth.

Presently, are facing inflationary pressure on the raw material inputs and some of them have even increased the prices to maintain margins.

The Kolkata-based company would try to absorb input costs through higher operational efficiency and judicious price increases, said the latest annual report of the company.

Going forward, the company intends to maintain decent margins on the back of stringent cost control and volume-led growth. Increase in raw material costs could be absorbed through higher operational efficiency and judicious price increases, said over the outlook for FY22.

In FY21, Emami's performance was impacted due to the pandemic-induced lockdown.

However, margins increased with 8 per cent sales growth due to stringent cost control and benign raw material prices, it added.

According to Emami, it enjoys one of the highest margins in India's companies, generating an attractive corpus for reinvestment.

The company is debt-free despite having invested more than Rs 2,600 crore in acquisitions over 12 years, it added.

In FY 21, Emami, which owns some power brands such as Navratna, Boro Plus, Kesh King, Men's Fairness Cream, had a revenue of Rs 2,881 crore, up 8.51 per cent from a year-ago period.

While its EBITDA for the financial year ended on March 31, 2021, was up 27.79 per cent to Rs 883 crore.

Its EBIDTA margin was at 30.7 per cent in FY21 as against 26 per cent of FY20.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, September 11 2021. 00:37 IST
RECOMMENDED FOR YOU
.