Emami Q2 net profit declines 33% to Rs 61.34 crore

FMCG firm Emami Ltd today reported 32.97 per cent decline in consolidated net profit at Rs 61.34 crore for the second quarter ended September 30, 2015 on account of amortisation of Kesh King intangibles.

The company had posted net profit of Rs 91.52 crore during the same period of previous fiscal, Emami said in a BSE filing.

However, the company's total income from operations rose 17.36 per cent to Rs 574.62 crore during the quarter under review as against Rs 489.60 crore in the same quarter of the last fiscal.

"PAT at Rs 61 crore de-grew by 33.0 per cent during the quarter and by 8.9 per cent in H1 FY16 at Rs 149 crore on account of amortisation of Kesh King intangibles," the company said in a statement.
 

Commenting on the results, Emami Director Mohan Goenka said, "Despite deflationary environment along with lower rural wage growth and an overall sluggish consumer environment during the quarter, we are happy to announce the domestic business growth of 19.5 per cent in the second quarter and of 21.5 per cent in H1 FY16."

Emami's consolidated net profit for the first half of FY 2015-16 also declined 8.85 per cent to Rs 149.09 crore as against a net profit of Rs 163.58 crore in the same period a year ago.

Its total income from operations on a consolidated basis during the first half of the current fiscal was up 19.88 per cent to Rs 1,164.49 crore as against Rs 971.33 crore in the same period a year ago.

Emami had acquired hair and scalp care business under the Kesh King and allied brands for Rs 1,684 crore in June, 2015.

It had raised around Rs 950 crore debt to partially fund the acquisition and balance was funded by its internal accruals.

Emami shares today settled 3.04 per cent down at Rs 1,049.60 per scrip on the BSE.