Emami Ltd Q2 Results

20% growth in international business helps firm post overall revenue growth, firm's brands improve market share despite tepid offtake

Emami's dependence on rural India is higher as it accounts for around 50 per cent of its revenues which is largely driven by wholesales and indirect distribution channels

After posting dismal results in the first quarter of the current fiscal year, Emami Ltd has bounced back posting a 49 per cent increase in its net profit at Rs. 99 crore for the quarter ended September 30, 2017 while net sales surged by nearly seven per cent at Rs. 628 crore.The net profit in the third quarter (Q3) of the last fiscal year stood at Rs. 584 crore while the net profit of the company was registered at Rs. 66 crore.While the company's domestic business grew by 14 per cent in the period under review, international business, which has been under stress for quite some time, bounced back, growing by 22 per cent. The growth in this business was led by the SAARC, Africa and CIS regions.Nevertheless, destocking in canteen stores department and wholesale channel disruption continues which Mohan Goenka, the company's director, expects to be over in the next 1-2 financial quarters."After a challenging first quarter faced with GST apprehensions resulting in substantial wholesale ...