Emami Q3 PAT up 6% to Rs 233 cr; revenue rises 1.2% to Rs 983 cr

New Delhi: Homegrown FMCG firm Emami Ltd on Friday reported a 6.12 per cent increase in consolidated Profit after Tax (PAT) to Rs 232.97 crore for the third quarter ended December 2022 amid contraction of gross margins due to inflationary pressure.

The company had posted a PAT of Rs 219.52 crore during the October-December quarter of the previous fiscal, Emami said in a regulatory filing.

Its revenue from operations rose 1.2 per cent to Rs 982.72 crore as against Rs 971.06 crore in the corresponding period of the previous fiscal.

"During the quarter Gross margins at 65.9 per cent contracted by 150 basis points due to inflationary pressure and a favourable portfolio mix last year. EBIDTA at Rs 294 crore declined by 14 per cent over the previous year due to the inclusion of new subsidiary costs, and strategic outlay on distribution expansion in rural, digital and modern trade channels," Emami said in its earning statement.

During the quarter, demand patterns for the FMCG sector remained "sluggish", with rural markets experiencing continued demand pressure, it said.

"Further, a warmer winter season across the country impacted sales even more," said Emami, adding that in the given macroeconomic context, it grew by 2 per cent and revenues by 1 per cent during the quarter, "translating into a healthy 3-year CAGR of 7 per cent compared to the pre-pandemic period".

Emami's total expenses were at Rs 688.47 crore, up 9.36 per cent from Rs 629.52 crore in the year-ago period.

Emami, which owns brands such as Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King, said its domestic business grew by 1 per cent during the October-December quarter.

"While rural markets remained muted, urban-centric new age channels like Modern Trade continued to grow strongly by 20 per cent and e-commerce by 45 per cent during the quarter," it said.

Modern trade and e-commerce together accounted for 18.4 per cent of domestic revenues in Q3 FY23.

The international business of the Kolkata-based firm grew by 7 per cent during the quarter.

"The growth has been mainly driven by strong performances in markets of MENA, CIS, Bangladesh & SEA," it said.

Emami Vice Chairman and Whole-Time Director Mohan Goenka said, "Notwithstanding the muted consumption patterns, our focus on innovation remains strong." Shares of Emami Ltd on Friday settled at Rs 419.30 on BSE, down 0.76 per cent from the previous close.