Emami Q4 net profit rises 59.42% to Rs 144.43 crore, revenue up 8.8%

Consumer goods company Emami on Thursday reported a 59.42 per cent year-on-year drop in consolidated net profit to Rs 144.43 crore in the January-March quarter (or Q4 FY23). Net profit was Rs.355.96 crore in the same period last year on account of lower taxes.

The company said that it had calculated MAT (Minimum Alternative Tax) credit accrual for prior years in Q4 FY22 amounting to Rs. 230.3 crore while there was no MAT credit accrual calculated in the current quarter for prior years and so the profit was lower.

Profit before tax was Rs.147.87 crore in the fourth quarter of FY23, up by 51.11 per cent from Rs.97.85 crore in the same period last year.

Revenue from operations at Rs.835.95 crore in the fourth quarter of FY23 was 8.8 per cent higher than the same period last year.

The company said the FMCG industry saw a mixed demand environment in the fourth quarter of fiscal year 2013, as discretionary categories such as personal care continued to remain muted due to a decline in non-essential spending by rural consumers.

The rural inflation rate reached 6.8 percent in FY23, the highest level in the previous nine years, and rural inflation exceeded urban inflation for the first time since FY2018. In addition, heavy rains affected many regions of the country in March on demand summer products.

Domestic business grew 5 percent during the quarter. International business grew by 19 percent, mainly driven by the Middle East, North Africa, CIS and Bangladesh markets.

Commenting on the performance, Harsha V Agarwal, Vice Chairman and Managing Director, Emami said that despite a challenging demand scenario due to high inflation, muted rural sentiment and unseasonal rains, the company delivered resilient profit-driven growth in the fourth quarter of FY23.

“After a few quarters of continued pressure on input costs, we were able to expand our gross and EBIDTA margins to achieve 20 percent growth in EBIDTA. Our strategic investment and acquisition of Dermicool has performed well and contributed to this growth.

Mohan Goenka, Vice Chairman and CEO, Emami said that while new age channels such as modern commerce and e-commerce as well as D2C have grown strongly by 18 percent and 64 percent respectively in the domestic market, international business has also registered strong growth. Growth of 19 percent during the quarter despite economic and geopolitical challenges in key markets.

“With input costs easing and inflationary pressures reduced, we are hopeful for a better demand scenario and improved profit margins in FY24,” Goenka added.

For the full FY23, revenue was Rs.3,405.73 crore compared to Rs.3,187.22 crore in FY22. Net profit was Rs.573.02 crore as compared to Rs.867.29 crore in the same period last year.