Hot Pursuit     13-May-22
Emami records PAT of Rs 356 crore in Q4 FY22
Emami reported a consolidated net profit of Rs 356.45 crore in Q4 FY22 as against a net profit of Rs 87.73 crore in Q4 FY21.

Revenue from operations rose by 5.4% YoY during the quarter to Rs 770.40 crore.

Emami said that the FMCG industry was affected with muted volumes in Q4 against the backdrop of rising inflation levels, further fuelled by geo-political factors, that impacted the overall consumption sentiment across rural and urban markets.

India business grew by 4% in Q4FY22, on a high base of 42% growth in previous year with all the brands either increasing or maintaining their leadership positions. Both Modern trade and e-commerce continued to perform exceedingly well to post a growth of 9% and 90%, respectively over previous year. In Q4 FY22, the salience of e-commerce channel increased to 7.1% of domestic revenues.

International Business grew by 8% over previous year, on a high base of 28% growth in previous year. Excluding sales from CIS region which was affected due to the prevailing geo-political uncertainity, International Business grew by 17% led by key geographies like Bangladesh and UAE.

EBIDTA remained flat at Rs 163.95 crore in Q4 FY22 as against Rs 162.80 crore in Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 103.78 crore, down by 14.7% from Rs 121.62 crore in Q4 FY21.

Emami said that the MAT credit entitlement amounting to Rs 288 crore was recognised during the period. Consequently, the company wrote back taxes amounting to Rs 256.28 crore in Q4 FY22. Tax outgo in Q4 FY21 was Rs 32.55 crore.

The company recorded 84.5% jump in consolidated net profit to Rs 838.99 crore on a 10.8% rise in revenue from operations to Rs 3,192.03 crore in FY22 over FY21.

Harsha V Agarwal, vice chairman and managing director, Emami, said: "Despite the challenging environment that the industry is going through since the last few years, we are happy to have posted a 3 year Profit before Tax CAGR of 20% in FY22, which is one of the highest in the industry since the COVID period.

With an overall focus on digital business, we are now increasingly looking at D2C and eB2B segments and our investments in new-age startups are a step towards being present in the ever expanding FMCG sector. Dermicool, acquired in March'22 is also expected to strengthen our leadership position in the Prickly Heat and Cool Talc segment and add to the growth of business.”

Mohan Goenka, vice chairman and whole-time director, Emami, said: “The Industry is going through a rough patch with inflation at its highest, impacting consumption across rural and urban sectors. We responded to the prevalent challenges with mix of cost control measures and judicious price increase and posted a resilient revenue growth of 6%. We are further strengthening our focus on analytics and technology in sales & distribution to drive the business ahead."

Emami is one of India's leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products. Its portfolio includes brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm & Mentho Plus. In 2015, the Company acquired the business of 'Kesh King' and forayed into the Ayurvedic hair & scalp care segment. In, 2019, the company acquired Creme 21, a German brand with strong roots & brand recall.

The scrip declined 4.93% to end at Rs 428.80 on the BSE today.

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