Shares of the FMCG firm surged 18.09% to Rs 304.25, extending gains for the third trading session.
Shares of Emami rallied 28.42% in three trading sessions from a recent closing low of Rs 236.90 on Thursday, 6 August 2020.
The company's consolidated net profit rose 1.2% to Rs 39.58 crore on 25.8% drop in net sales to Rs 481.34 crore in Q1 June 2020 over Q1 June 2019. Profit before tax (PBT) slipped 13.6% to Rs 49.06 crore in Q1 June 2020 as against Rs 56.81 crore in Q1 June 2019. Current tax expense for the quarter tanked 24.3% at Rs 12.67 crore as against Rs 16.73 crore paid in Q1 June 2019.
The Q1 earnings were declared during market hours on Friday, 7 August 2020. Following the result, the stock surged 8.76% to settle at Rs 257.65 on BSE.
EBIDTA margins improved by 490 bps despite lower sales due to stringent cost control measures and benign raw material prices. During the quarter, the company's healthcare and hygiene portfolio range performed well by growing over 29%. However, offtakes of summer portfolio were impacted due to the lockdown, coupled with a weak discretionary consumption environment, which led to an overall decline of 26% in Q1 FY21 with revenue at Rs 481 crore.
While traditional channels were impacted due both lockdown and social distancing norms, the e-commerce channel doubled its revenues during the quarter in the domestic business. International business was subdued due to the pandemic led challenges in key geographies which declined by 19% during the quarter. The firm also introduced a hygiene range for International business. The CSD business declined by 38% during the quarter.
Speaking on the Q1 results, Mohan Goenka, the director of Emami, has said that: "We are happy that despite the unprecedented nonconducive business environment due to COVID-19 lockdown which severely impacted our sales in April during the 1st quarter, we have successfully overcome the challenges to post a high single digit growth in the month of June and double-digit growth in July. Our May performance had also showed considerable improvement as we navigated the current challenges to emerge successfully with our combating strategy to overcome the muted environment. Our margins grew due to stringent cost control measures and all our new products performed well, particularly the personal hygiene and immunity building categories. Going forward, we expect the growth momentum to continue."
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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