Emami Q1 FY24 net up by 88% to Rs 137 cr on strong demand

Kolkata: Driven by robust growth, FMCG player Emami Limited on Monday said its consolidated net profit for the first quarter of FY'24 surged by 88 per cent to Rs 136.75 crore, compared to Rs 72.69 crore in the corresponding quarter of the previous year.

The company's consolidated revenues grew by 7 per cent to Rs 826 crore during the quarter.

The company attributed the increase in net profit to strong growth in both its domestic and international businesses.

"Excluding the sales of the summer portfolio, the domestic business grew strongly by 16 per cent, while the overall growth of the domestic business in Q1FY24 stood at 7 per cent. The pain management range, healthcare range, and BoroPlus achieved robust double-digit growth, and Dermicool posted high single-digit growth," the company said in a statement.

International business grew by 8 per cent during the quarter, with robust growth in SAARC, GCC & CIS regions.

Emami reported relief in raw material cost pressure. The quarter witnessed a gross margin expansion of 240 basis points to 65.4 per cent.

The company stated that despite investments in brand building and the integration of subsidiaries in the investment phase, EBITDA reached Rs 190 crore, expanding by 10 per cent, while the margin increased 60 basis points to 23 per cent.

"While erratic summer weather and unseasonal rains impacted summer product offtakes, our non-summer portfolio grew strongly by 16 per cent. International business also continued its growth trajectory with 11 per cent constant currency growth. With inflation moderating further, we look to the future with increased optimism and confidence. The overall domestic business grew by seven per cent despite a challenging operating environment," Emami's Vice-Chairman and MD, Harsha V Agarwal, said.

The company also concluded the buyback of its shares amounting to Rs 185.3 crore (excluding brokerage, taxes & levies). Following the buyback, the share capital was reduced from 44.12 crore to 43.65 crore equity shares, and the promoter's stake increased from 54.27 per cent to 54.84 per cent.

Emami shares jumped 2.19 per cent to close at Rs 560.05 at NSE.