For the
quarter ending March 2022, consolidated net sales (including other operating income) of Emami has increased 5.42% to Rs 770.39 crore compared to quarter ended march 2021.
Operating profit margin has declined from 22.28% to 21.28%, leading to 0.70% rise in operating profit to Rs 163.94 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 25.58% to 27.76%. Purchase of finished goods cost rose from 12.82% to 12.92%. Employee cost decreased from 10.22% to 9.73%. Other expenses fell from 29.48% to 29.35%. Selling and administration expenses rose from 18.16% to 18.45%. Other income fell 34.86% to Rs 30.29 crore. PBIDT fell 7.20% to Rs 194.23 crore. Provision for interest fell 61.44% to Rs 1.82 crore. Loan funds rose to Rs 281.55 crore as of 31 March 2022 from Rs 100.74 crore as of 31 March 2021. Inventories rose to Rs 357.61 crore as of 31 March 2022 from Rs 300.45 crore as of 31 March 2021. Sundry debtors were higher at Rs 320.92 crore as of 31 March 2022 compared to Rs 231.75 crore as of 31 March 2021. Cash and bank balance declined from Rs 360.37 crore as of 31 March 2021 to Rs 116.00 crore as of 31 March 2022. Investments rose to Rs 302.70 crore as of 31 March 2022 from Rs 255.33 crore as of 31 March 2021 . PBDT fell 5.95% to Rs 192.41 crore. Provision for depreciation rose 0.60% to Rs 83.46 crore. Fixed assets declined from Rs 784.22 crore as of 31 March 2021 to Rs 761.38 crore as of 31 March 2022. Intangible assets increased from Rs 354.05 crore to Rs 585.61 crore. Profit before tax down 10.42% to Rs 108.95 crore. Share of profit/loss was 342.54% lower at Rs -5.93 crore. Provision for tax was credit of Rs 256.27 crore, compared to debit of Rs 32.55 crore. Effective tax rate was negative 261.93% compared to 27.06%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 305.74% to Rs 355.96 crore. Equity capital decreased from Rs 44.45 crore as of 31 March 2021 to Rs 44.12 crore as of 31 March 2022 . Per share face Value remained same at Rs 1.00. Promoters’ stake was 54.27% as of 31 March 2022 ,compared to 53.86% as of 31 March 2021 . Promoters pledged stake was 35.21% as of 31 March 2022 ,compared to 32.89% as of 31 March 2021 .
Full year results analysis.
Net sales (including other operating income) of Emami has increased 10.81% to Rs 3192.03 crore. Operating profit margin has declined from 30.66% to 29.84%, leading to 7.85% rise in operating profit to Rs 952.37 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 24.43% to 27.80%. Purchase of finished goods cost fell from 8.28% to 6.90%. Employee cost decreased from 10.66% to 9.81%. Other expenses fell from 26.18% to 26.07%. Selling and administration expenses rose from 15.80% to 16.15%. Other income rose 35.55% to Rs 95.25 crore. PBIDT rose 9.89% to Rs 1047.62 crore. Provision for interest fell 61.79% to Rs 5.07 crore. Loan funds rose to Rs 281.55 crore as of 31 March 2022 from Rs 100.74 crore as of 31 March 2021. Inventories rose to Rs 357.61 crore as of 31 March 2022 from Rs 300.45 crore as of 31 March 2021. Sundry debtors were higher at Rs 320.92 crore as of 31 March 2022 compared to Rs 231.75 crore as of 31 March 2021. Cash and bank balance declined from Rs 360.37 crore as of 31 March 2021 to Rs 116.00 crore as of 31 March 2022. Investments rose to Rs 302.70 crore as of 31 March 2022 from Rs 255.33 crore as of 31 March 2021 . PBDT rose 10.90% to Rs 1042.55 crore. Provision for depreciation fell 8.77% to Rs 334.78 crore. Fixed assets declined from Rs 784.22 crore as of 31 March 2021 to Rs 761.38 crore as of 31 March 2022. Intangible assets increased from Rs 354.05 crore to Rs 585.61 crore. Profit before tax grew 23.50% to Rs 707.77 crore. Share of profit/loss was 248.80% lower at Rs -14.58 crore. Provision for tax was credit of Rs 148.66 crore, compared to debit of Rs 114.21 crore. Effective tax rate was negative 21.61% compared to 20.07%. Net profit attributable to owners of the company increased 84.52% to Rs 838.99 crore. Equity capital decreased from Rs 44.45 crore as of 31 March 2021 to Rs 44.12 crore as of 31 March 2022 . Per share face Value remained same at Rs 1.00. Promoters’ stake was 54.27% as of 31 March 2022 ,compared to 53.86% as of 31 March 2021 . Promoters pledged stake was 35.21% as of 31 March 2022 ,compared to 32.89% as of 31 March 2021 .
Other Highlights
The company has bought back
33,63,740 equity shares under the buyback by utilizing Rs 161.21 crore. The
buyback commenced on 9th Feb 2022 and ended on 21st March
2022.
During Q4 FY22, company
acquired 20.65% stake in Tru Nativ F&B and it has become an associate.
Company also acquired “Dermicool” which is one of the leading brands in pricky
heat powder for a consideration of Rs 432 crore.
In Q4 FY22, Domestic
Business grew by 3%, International Business grew by 8% and Institutional
Business grew by 32% on YoY basis.
In FY22, Domestic Business
grew by 11%, International Business grew by 5% and Institutional Business grew
by 26% on YoY basis.
In Q4 FY22, domestic sales contributed
78% of total sales, International Business 18% and Institutional Business 4%.
In FY22, domestic sales
contributed 82% of total sales, International Business 15% and Institutional
Business 3%.
In FY22, modern trade grew
by 17% on Yoy basis and e-commerce grew by 117% on YoY basis.
In FY22, Pain Management
Range grew by 18%, Navratna Range 5%, BoroPlus Range 5%, Kesh King Range 11%,
Male Grooming Range 16%, Healthcare Range 9% and 7 Oils in One 9% on YoY basis.
For FY22, SAARC (South Asian
Association for Regional Cooperation) contributed 44% of total international
sales, MENA (Middle East & North Africa) 34%, CIS (Commonwealth of
Independent States) 10% and others 12%.
Management Comments :
Mr Harsha V Agarwal, Vice
Chairman and Managing Director, Emami Limited 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”
Mr Mohan Goenka, Vice
Chairman and Whole-Time Director, Emami Limited 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. We are
hopeful of improvement in the sector soon.”
| Emami : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 770.39 | 730.76 | 5.42 | 3,192.03 | 2,880.53 | 10.81 | | OPM (%) | 21.28 | 22.28 | -100 bps | 29.84 | 30.66 | -82 bps | | OP | 163.94 | 162.80 | 0.70 | 952.37 | 883.05 | 7.85 | | Other Inc. | 30.29 | 46.50 | -34.86 | 95.25 | 70.27 | 35.55 | | PBIDT | 194.23 | 209.30 | -7.20 | 1,047.62 | 953.32 | 9.89 | | Interest | 1.82 | 4.72 | -61.44 | 5.07 | 13.27 | -61.79 | | PBDT | 192.41 | 204.58 | -5.95 | 1,042.55 | 940.05 | 10.90 | | Depreciation | 83.46 | 82.96 | 0.60 | 334.78 | 366.95 | -8.77 | | PBT | 108.95 | 121.62 | -10.42 | 707.77 | 573.1 | 23.50 | | Share of Profit/(Loss) from Associates | -5.93 | -1.34 | -342.54 | -14.58 | -4.18 | -248.80 | | PBT before EO | 103.02 | 120.28 | -14.35 | 693.19 | 568.92 | 21.84 | | EO Income | -5.18 | 0 | - | -5.18 | 0 | - | | PBT after EO | 97.84 | 120.28 | -18.66 | 688.01 | 568.92 | 20.93 | | Taxation | -256.27 | 32.55 | LP | -148.66 | 114.21 | LP | | PAT | 354.11 | 87.73 | 303.64 | 836.67 | 454.71 | 84.00 | | Minority Interest (MI) | -1.85 | 0 | - | -2.32 | 0.01 | LP | | Net profit | 355.96 | 87.73 | 305.74 | 838.99 | 454.7 | 84.52 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 355.96 | 87.73 | 305.74 | 838.99 | 454.7 | 84.52 | | EPS (Rs)* | 2.34 | 1.98 | 18.07 | 15.72 | 10.28 | 52.87 | | | * EPS is on current equity of Rs 44.23 crore, Face value of Rs 1, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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