Emami, the FMCG giant, showcased its resilience in the face of economic challenges as it reported a 6% increase in consolidated revenue from operations, reaching Rs 864.5 crore for the September quarter. Despite a 3% decline in net profit on a yearly basis, amounting to Rs 178.5 crore due to lower other incomes, the company demonstrated robust operational performance.
The positive results were driven by Emami’s efficient cost management, benefiting from low raw material costs, which led to a significant 300-basis points expansion in EBITDA margins. The domestic business witnessed a 4% growth, while the international segment showed remarkable growth at 12% during the quarter under review. According to analysts at HSBC, Emami’s international business remained consistent, providing steady results, although the domestic market faced challenges due to subdued rural demand.
Emami shares opened with gains on November 7, reflecting investor confidence after the company’s impressive performance in Q2. Despite a minor dip in share value during the trading session, closing 0.79% down at ₹514.70 at 1:34 pm, the stock has demonstrated remarkable resilience throughout 2023, surging by approximately 21%.
