FMCG major Emami reported an 11.88 per cent increase in consolidated profit after tax to Rs 260.65 crore for the December quarter of 2023-24, aided by improved margins due to lower input prices.
According to the company’s regulatory filing, the business had a net profit of Rs 232.97 crore in the October-December fiscal year 23.
Revenue from operations increased 1.38 per cent to Rs 996.32 crore during the quarter under review, compared to Rs 982.72 crore in the previous quarter.
The domestic company’s revenue remained steady. However, non-winter items climbed by 5 per cent. The worldwide company generated a constant currency rise of 11 per cent, according to the Kolkata-headquartered firm in its earning statement.
On margins, Emami stated that the company’s gross margins increased significantly due to lower input prices, hitting 68.8 per cent, representing a strong rise of 290 basis points during the quarter.
In the December quarter, EBITDA was Rs 315 crore, up 7 per cent, with margins increasing by 170 basis points to 31.6 per cent.
Total costs stood at Rs 681.45 crore, up 1 per cent YoY. Total income was Rs 1,013.03 crore, up 2.36 per cent from the previous year.
“The third quarter witnessed subdued demand trends, particularly in rural markets. Moreover, the period was characterised by the late onset of winter, negatively impacting the demand for winter contextual products,” it said.
Despite these challenges, the company negotiated the volatile business climate, exhibiting resilience and generating profit-led growth in Q3FY24, it stated.
“Disrupted winter, weak rural demand and continued inflationary woes impacted the winter and discretionary offtakes. We remain committed to delivering volume-led profitable growth going forward aided by accelerated scale up of emerging channels, distribution initiatives, ongoing brand and strategic investments coupled with launch of innovative products,” Emami said.
