For
the quarter ending June 2022, consolidated net sales (including other operating income) of Emami has increased 17.75% to Rs 778.29 crore compared to quarter ended june 2021. Operating profit margin has declined from 25.68% to 22.27%, leading to 2.13% rise in operating profit to Rs 173.32 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.72% to 22.81%. Purchase of finished goods cost rose from 6.53% to 9.19%. Employee cost decreased from 12.73% to 12.39%. Other expenses rose from 27.45% to 31.42%. Selling and administration expenses rose from 16.56% to 19.02%. Other income fell 40.95% to Rs 6.33 crore. PBIDT fell 0.43% to Rs 179.65 crore. Provision for interest rose 289.06% to Rs 2.49 crore.
PBDT fell 1.46% to Rs 177.16 crore. Provision for depreciation rose 6.16% to Rs 88.11 crore.
Profit before tax down 8% to Rs 89.05 crore. Share of profit/loss was 187.50% lower at Rs -4.37 crore. Provision for tax was expense of Rs 11.99 crore, compared to Rs 17.48 crore. Effective tax rate was 14.16% compared to 18.35%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 5.09% to Rs 73.83 crore. Promoters’ stake was 54.27% as of 30 June 2022 ,compared to 53.86% as of 30 June 2021 . Promoters pledged stake was 37.14% as of 30 June 2022 ,compared to 30.92% as of 30 June 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 .
Cash flow from operating activities decreased to Rs 643.85 crore for year ended March 2022 from Rs 921.53 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 483.56 crore, compared to Rs 33.68 crore during the year ended March 2021.
Other Highlights
Unprecedented
inflationary headwinds continued to impact the FMCG sector leading to softening
of consumer sentiment across urban and rural markets, resulting in lower
margins during the quarter.
In Q1 FY23,
Domestic Business grew by 13%, International Business grew by 45% and other operating
income grew by 54% on YoY basis.
In Q1 FY23,
domestic sales contributed 85% of total sales and International Business 15%.
In Q1 FY23,
modern trade grew by 42% on Yoy basis and e-commerce grew by 55% on YoY basis.
In FY22, Pain
Management Range grew by 30%, Navratna Range 29%, BoroPlus Range remains flat,
Kesh King Range 20%, Male Grooming Range 32%, Healthcare Range declined by 25%
and 7 Oils in One increased 45% on YoY basis.
For Q1 FY23,
SAARC (South Asian Association for Regional Cooperation) contributed 33% of
total international sales, MENA (Middle East & North Africa) 45%, CIS (Commonwealth
of Independent States) 9% and others 13%.