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The consolidated net sales for June 2017 quarter de-grew by 16% to Rs 541.10 crore. Domestic business down by 16%, international business by 19% (11% contribution to total revenue) and CSD by 20% (4% contribution to total revenue). Domestic Business significantly impacted due to down-stocking for GST. International Business impacted due to global economic slowdown and geo-political problems in the Middle eastern countries. There was sizeable inventory correction in international market. OPM has decreased by 800bps to 14.8%. The net profit declined by 98% to Rs 1.04 crore.
Company's consolidated performance
For quarter ended June 2017
The net sales de-grew by 16% to Rs 541.10 crore. Domestic business down by 16%, international business by 19% (11% contribution to total revenue) and CSD by 20% (4% contribution to total revenue). Domestic Business significantly impacted due to down-stocking for GST. International Business impacted due to global economic slowdown and geo-political problems in the Middle eastern countries. There was sizeable inventory correction in international market.
BoroPlus range grew by 20%.Antiseptic Cream grew by 41%. Prickly Heat Powder declined by 2%.
7 Oils in One grew by 16%
Navratna range declined by 11%. Cool Oils declined by 15%.Introduced new SKU's in Navratna Extra Thanda Cool Oil (250ml) and Navratna Almond Cool Oil (200ml and 15 ml). Cool Talc declined by 3%. Launched a new variant – ‘i-COOL' Dynamite. Introduced new SKU's in ‘i-COOL' Blast variant (50 gm and 400gm)
Fair and Handsome range declined by 19%. Fairness Creams declined by 21%.
Kesh King range declined by 28%.
HE "On the Go", India's first Waterless Face Wash, well appreciated by consumers
Healthcare range declined by 23%. Pain Management range declined by 16%.Balms declined by 21%.New Launches – Zandu Spray, Zandu Gel and Zandu Roll on performed well. Pancharishtha declined by 43%.Nityam Churna and Tablets grew by 15%
Slowdown and political instability in Middle east countries impacted the overall performance of International Business. Escalation of tensions between Qatar & other GCC countries and failure of OPEC's decision to extend its current crude production cuts has led to a turbulent business atmosphere in the Middle eastern countries. Undertaken reduction of stock levels across key markets
OPM has decreased by 800bps to 14.8% due to rise in overall expenditures to adjusted net sales. The operating profit declined by 46% to Rs 80.17 crore.
Other income increased by 28% to Rs 6.48 crore. The interest cost decreased 37% to Rs 7.93 crore while depreciation/amortization has inclined by 5% to Rs 75.04 crore. Amortization of acquired trademarks / brands of Kesh King was Rs 59.79 crore. The profit before tax decreased by 95% to Rs 3.68 crore
The tax outgo for the quarter stood at Rs 2.79 crore, declined by 76%. The effective tax rate inclined from 17.13% to 75.8%. After considering minority interest, the net profit declined by 98% to Rs 1.04 crore.
For year ended March 2017
The net sales have increased by 6% at Rs 2532.61 crore. The OPM has increased by 130bps to 30%. The operating profit inclined by 10% to Rs 759.13 crore.
Other income decreased by 30% to Rs 31.08 crore. The interest cost increased 7% to Rs 58.01 crore while depreciation/amortization has inclined by 21% to Rs 308.58 crore. The profit before tax flat at Rs 423.62 crore
The tax outgo stood at Rs 83.61 crore, inclined by 40%. The effective tax rate inclined from 14.12% to 19.73%. After considering minority interest, the net profit decreased by 6% to Rs 340.42 crore due to amortization and rise in tax rate.
Other Developments
The company has incorporated wholly owned subsidiary Emami Indo Lanka Pvt Ltd in Sri Lanka on 27th June 2017.
Valuation
The scrip is trading at Rs 1088.6 on BSE.
The total promoters holding in the company stand at 72.74%.
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