Revenue from operations increased by 37.3% YoY to Rs 660.95 crore during the quarter.

As compared with Q4 FY21, the company's net profit and revenue from operations have declined by 11.3% and 9.6%, respectively.

Emami said that the second wave of COVID pandemic surged across the country from mid-April onwards leading to lockdowns and restrictions in various states, severely affecting both urban and rural regions. While the initial weeks of April witnessed sustained growth momentum, subsequent increase in COVID cases led to a challenging phase over the month of May. While personal care products were impacted, demand for Health and hygiene products was also muted compared to the first wave phase.

While domestic business grew by 42% over previous year, it grew by 5% over last to last year despite the raging impact of 2nd wave. Further, all major brands grew handsomely by more than 50% during the quarter except for Navratna which posted growth of 21% due to lockdowns.

During the quarter, modern trade grew by 63% and ecommerce continued its robust run growing by 3.7x. In Q1FY22, ecommerce business increased its contribution by 300 bps to approximately 5% of domestic revenues.

The company's international business grew by 17%. Barring middle eastern geographies, all other regions posted strong growth during the quarter.

Gross margins at 66% were lower by just 50 bps over previous year.

EBIDTA grew by 38% to Rs. 170 crore and EBIDTA margins improved by 20 bps to 25.7% in Q1 FY22 over Q1 FY21.

Profit before tax in Q1 FY22 stood at Rs 95.27 crore, up by 94.2% from Rs 49.06 crore in Q1 FY21. Current tax outgo rose by 68.2% YoY during the period under review.

During the quarter, the company also increased its stake in Helios Lifestyle (The Man Company), which is in line with Emami's focus on strategic investments in start-ups to incubate new engines of growth.

Mohan Goenka, director, Emami, said: “We are very happy that despite challenges, we could post one of our most profitable quarterly results. Our profitability was not only higher than the base quarter, which was impacted by the nationwide lockdown, but also much superior to the normal first quarter of FY20.

However, the overall demand since early June has once again been showing improvement with the COVID positivity rates dropping to pre-2nd wave levels. Our focus on the progress of standalone modern stores as well as Project Khoj to increase footprints in rural areas is progressing steadily. We also posted record profits during the quarter despite high input cost pressure, which highlights our resilience.”

Emami is one of India's leading FMCG companies engaged in manufacturing & marketing of personal care & healthcare products.

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