 "Emami net profit up 86.5%, reports 7% domestic business growth in Q1FY24")
Fast-moving consumer goods firm Emami reported 86.5 per cent year-on-year rise in consolidated net profit to Rs 137.72 crore for the quarter from April to June in the financial year 2024. In the same period last year, the net profit stood at Rs 73.83 crore.
Revenue from operations was higher by 6.8 per cent from the year-ago period, at Rs 825.66 crore. Excluding the sales of the summer portfolio, the domestic business grew by 16 per cent. The overall growth of the domestic business in the first quarter of the financial year 2024 was 7 per cent, while the domestic summer portfolio was down by 5 per cent.
Modern trade and e-commerce contributed 9.7 per cent each to the domestic business, increasing their saliency by 250 basis points and 260 basis points respectively.
Emami stated that the easing of raw material cost pressure during the quarter led to an expansion of gross margins by 240 basis points at 65.4 per cent.
"While erratic summer and unseasonal rains impacted summer product offtakes, our non-summer portfolio grew strongly by 16 per cent. The international business also continued its growth trajectory with 11 per cent constant currency growth," said Harsha V Agarwal, vice-chairman and managing director at Emami. He added, with inflation moderating further, we look to the future with increased optimism and confidence.
Mohan Goenka, vice-chairman and whole-time director, mentioned that the quarter witnessed a strong performance by the pain management, BoroPlus, and healthcare range, which grew in double digits, with Dermicool posting high single-digit growth.
Emami also said that it had concluded the buyback of its shares amounting to Rs 185.3 crore (excluding brokerage, taxes, and levies). As a result of the buyback, the share capital was reduced from 44.12 crore to 43.65 crore equity shares and the promoter stake increased from 54.27 per cent to 54.84 per cent.