Emami rose 1.02% to Rs 375.35 after consolidated net profit jumped 23.39% to Rs 118.45 crore on 11.32% jump in revenue from operations to Rs 734.82 crore in Q2 September 2020 over Q2 September 2019.
Consolidated profit before tax (PBT) surged 25.38% to Rs 146.85 crore in Q2 September 2020 as against Rs 117.12 crore in Q2 September 2019. Current tax expense for the quarter soared 41.94% to Rs 28.09 crore as against Rs 19.79 crore in Q2 September 2019. The Q2 result was declared during market hours today, 5 November 2020. The board declared an interim dividend of Rs 4 per share.
In H1 FY21, Emami has launched 20 new products which contributed to 4% of the domestic sales. Out of the 20 products, 8 were launched in Q2 FY21.
Emami closed the second quarter with an all-round record performance across brands. Despite COVID-19, the company posted a double-digit revenue growth for the quarter, with its domestic business recorded a 13% jump. The sustained growth momentum achieved by the Health & Hygiene segment along with the sequential recovery in the personal care brands aided the company.
During the quarter, rural markets continued to perform better than urban, aided by Government packages, relatively lower impact of the pandemic and the consumption shift due to reverse migration of labour. All the channels posted convincing growth with e-commerce channel tripling its revenues during the quarter. Modern trade, which was impacted due to social distancing norms in the first quarter has bounced back, registering a growth of 9% during Q2 FY21.
During the quarter, both the profits and margins of Emami increased significantly. Stringent cost control measures and benign raw material prices helped the company to improve its margins. Gross margins stood at 70.3% (up by 60 bps). While EBIDTA grew 33%, EBIDTA margin stood at 35% (up by 570 bps). Cash profits were at Rs 233 crore, increasing by 31% while cash profit margin stood at 31.7% (up by 480 bps).
International business grew by 11% led by Bangladesh and MENAP during the quarter. The company also introduced a hygiene range specially made for International Business which was well received. The Canteen Stores Department (CSD) business however declined marginally by 2% during the quarter.
Mohan Goenka, the director of Emami, said: "We are happy with the company's performance as majority of our portfolio returned to healthy growth, signifying improved consumer sentiment and supply chain operations. Rural offtakes have also started looking up and Modern Trade is now looking positive with malls openingup. Our pain management portfolio has performed exceedingly well along with Kesh King, which has achieved its highest ever quarter sales. We continue to undertake stringent cost control measures and are very optimistic of sustaining the growth momentum in the future."
Emami is an FMCG company engaged in manufacturing & marketing of personal care & healthcare products. It is the flagship company of the diversified Emami Group.
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