Emami Ltd on Thursday reported a 5 per cent year-on-year rise in its consolidate net profit for October-December quarter at Rs 220 crore as high inflation hit the demand for company's products. Revenue from operations grew 4 per cent to Rs 972 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) was almost flat at Rs 342 crore. The company's board also approved buyback of its equity shares for an amount not exceeding Rs 162 crore. The shares will be bought back at a maximum price of Rs 550 per share. Emami said the quarter witnessed high inflation leading to a deceleration in consumer demand. Its domestic business grew by 3 per cent on a year-on-year basis, while international business grew by 7 per cent on a year-on-year basis. "Excluding sales of immunity and hygiene range, international business grew by 14 per cent led by key geographies like Bangladesh and Sri Lanka in SAARC and other regions like Africa and SEA," the company said in a release. Modern trade grew by 14 per cent and e-commerce continued its robust run growing by 75 per cent over previous year. In Q3FY22, the salience of these new age channels has increased to 14 per cent of domestic revenues, it added. Also Read: Titan Q3 results: Net profit rises 135% to Rs 987 cr, sales up 36%
Commenting on the results, the company's director Mohan Goenka said, "We are satisfied with the performance achieved amidst chaos and lockdown that prevailed in some form or the other during the quarter. Various initiatives undertaken for expanding our reach have resulted in increase in rural penetration and improved distribution. Our focus on new-age channels like Modern Trade, SAMT, e-commerce and D2C business remains strong with more than 5 per cent of our domestic revenues being generated digitally." Director Harsha V Agarwal commended the company for keeping its EBITDA unchanged despite inflationary pressures and rising costs. The company's board also declared an interim dividend of Rs 4 per share. It also said that founders R S Agarwal and R S Goenka have decided to step down from their current executive positions while continuing on its board. Besides, the board also accepted Sushil K Goenka's request to step down from his current position as Managing Director of the company. He has been re-appointed as a whole-time director. Shares of Emami on Thursday ended 1.98 per cent lower at Rs 498.50 on the BSE.
Also Read: Emami rejigs board; founders RS Agarwal, RS Goenka make way for their sons