Results     08-Aug-23
Analysis
Emami
NP up 86.54%
For the quarter ending June 2023, consolidated Net sales (including other operating income) of Emami has increased 6.77% to Rs 825.66 crore compared to quarter ended June 2022.  Operating profit margin has jumped from 22.41% to 23.01%, leading to 9.63% rise in operating profit to Rs 190.01 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 21.95% to 20.43%.   Purchase of finished goods cost rose from 9.57% to 12.28%.   Employee cost increased from 12.48% to 12.64%.   Other expenses fell from 31.64% to 30.98%.   Selling and administration expenses fell from 19.16% to 18.92%.   

Other income rose 30.81% to Rs 8.28 crore.  PBIDT rose 10.38% to Rs 198.29 crore.  Provision for interest fell 14.06% to Rs 2.14 crore.  

PBDT rose 10.72% to Rs 196.15 crore.  Provision for depreciation fell 47.79% to Rs 46 crore.  

Profit before tax grew 68.61% to Rs 150.15 crore.  Share of profit/loss was 88.56% higher at Rs -0.5 crore.  Provision for tax was expense of Rs 12.9 crore, compared to Rs 11.99 crore.  Effective tax rate was 8.62% compared to 14.16%.

Minority interest increased 14.91% to Rs -0.97 crore.  Net profit attributable to owners of the company increased 86.54% to Rs 137.72 crore.  

Promoters’ stake was 54.52% as of 30 June 2023 ,compared to 54.27% as of 30 June 2022 .  Promoters pledged stake was 33.29% as of 30 June 2023 ,compared to 37.14% as of 30 June 2022 .  



Full year results analysis.

Net sales (including other operating income) of Emami has increased 6.69% to Rs 3405.73 crore.  Operating profit margin has declined from 29.84% to 25.33%, leading to 9.41% decline in operating profit to Rs 862.76 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.80% to 24.48%.   Purchase of finished goods cost rose from 6.90% to 10.08%.   Employee cost increased from 9.81% to 10.92%.   Other expenses rose from 26.07% to 28.91%.   Selling and administration expenses rose from 16.15% to 16.64%.   

Other income fell 27.63% to Rs 68.93 crore.  PBIDT fell 11.07% to Rs 931.69 crore.  Provision for interest rose 45.76% to Rs 7.39 crore.  Loan funds declined from Rs 281.55 crore as of 31 March 2022 to Rs 90.51 crore as of 31 March 2023.  Inventories declined from Rs 357.61 crore as of 31 March 2022 to Rs 328.04 crore as of 31 March 2023.  Sundry debtors were higher at Rs 414.60 crore as of 31 March 2023 compared to Rs 320.92 crore as of 31 March 2022.  Cash and bank balance rose to Rs 184.75 crore as of 31 March 2023 from Rs 116.00 crore as of 31 March 2022.  Investments declined from Rs 302.70 crore as of 31 March 2022 to Rs 293.36 crore as of 31 March 2023.  

PBDT fell 11.34% to Rs 924.3 crore.  Provision for depreciation fell 26.15% to Rs 247.25 crore.  Fixed assets declined from Rs 1,322.84 crore as of 31 March 2022 to Rs 707.67 crore as of 31 March 2023.  Intangible assets increased from Rs 24.15 crore to Rs 544.00 crore.  

Profit before tax down 4.34% to Rs 677.05 crore.  Share of profit/loss was 48.56% higher at Rs -7.5 crore.  Provision for tax was debit of Rs 42.14 crore, compared to credit of Rs 148.66 crore.  Effective tax rate was 6.29% compared to negative 21.61%.

Minority interest decreased 424.14% to Rs -12.16 crore.  Net profit attributable to owners of the company decreased 23.77% to Rs 639.57 crore.  

Equity capital stood at Rs 44.12 crore as of 31 March 2023 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 2023 ,compared to 54.27% as of 31 March 2022 .  Promoters pledged stake was 40.12% as of 31 March 2023 ,compared to 35.21% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 748.88 crore for year ended March 2023 from Rs 643.85 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 40.46 crore, compared to Rs 483.56 crore during the year ended March 2022.  

Other Highlights

In Q1 FY24, Domestic Business grew by 7%, International Business grew by 8% with a constant currency growth of 11% on YoY basis.

The Company concluded Buyback of its shares amounting to Rs 185.3 crore (excluding brokerage, taxes & levies). Following the Buyback, share capital reduced from 44.12 crore to 43.65 crore equity shares and promoter stake increased from 54.27% to 54.84%.

In Q1 FY24, new age channels like Modern Trade and eCommerce continued to perform well, growing by 45% and 47% respectively over previous year.

In Q1 FY24, Pain Management Range grew by 14%, Navratna Range down 8%, BoroPlus Range increased 19%, Kesh King Range up 2%, Male Grooming Range sales remains flat and Healthcare Range up by 11% on YoY basis. 


Management Comments :
Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “We are happy to report a 7% growth in domestic business despite challenging operating environment. While erratic summer & unseasonal rains impacted summer product offtakes, our non-summer portfolio grew strongly by 16%. International business also continued its growth trajectory with 11% constant currency growth. With inflation moderating further, we look to the future with increased optimism and confidence. With the development of digital eco-system, both e-commerce and D2C will play a key role in the organisation’s growth and we will continue to invest in strengthening our presence in an omni-channel presence to reach our consumers.”

Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: “The quarter witnessed strong performance by our Pain Management, BoroPlus and Healthcare range which grew in double digits, with Dermicool posting a high single digit growth. Backed by our resilient and competitive performance and aided by softening of input cost, we could deliver healthy expansion of gross margin and EBIDTA and a robust profit growth of 87%. All our channels, especially Modern Trade eCommerce continued to perform well and contributed 9.7% each to domestic business, a growth by 45% and 47% respectively over previous year. We endeavour to strengthen our core and continue to invest in growth drivers to deliver healthy profitability this year.”

 



Emami : Consolidated Results
 Quarter endedYear ended
Particulars202306202206Var.(%)202303202203Var.(%)
Net Sales (including other operating income)825.66773.316.773,405.733,192.036.69
OPM (%)23.0122.4160 bps25.3329.84-450 bps
OP190.01173.329.63862.76952.37-9.41
Other Inc.8.286.3330.8168.9395.25-27.63
PBIDT198.29179.6510.38931.691,047.62-11.07
Interest2.142.49-14.067.395.0745.76
PBDT196.15177.1610.72924.301,042.55-11.34
Depreciation4688.11-47.79247.25334.78-26.15
PBT150.1589.0568.61677.05707.77-4.34
Share of Profit/(Loss) from Associates-0.5-4.3788.56-7.5-14.5848.56
PBT before EO149.6584.6876.72669.55693.19-3.41
EO Income00-0-5.18-
PBT after EO149.6584.6876.72669.55688.01-2.68
Taxation12.911.997.5942.14-148.66PL
PAT136.7572.6988.13627.41836.67-25.01
Minority Interest (MI)-0.97-1.1414.91-12.16-2.32-424.14
Net profit137.7273.8386.54639.57838.99-23.77
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations137.7273.8386.54639.57838.99-23.77
EPS (Rs)*3.121.6786.5414.5015.76-7.99
* EPS is on current equity of Rs 44.12 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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