Emami Q2 profit down 16 percent to Rs 83 crore

By

Maverick Martins

Published
Oct 31, 2018

FMCG firm Emami Ltd saw its profit plummet 16 percent to Rs 83 crore (approx $11.3 million) for the second quarter ended September 30, 2018, as compared to Rs 99 crore it had posted during July-September quarter a year ago.

The company’s revenue for the quarter remained stagnant at Rs 628 crore as against Rs 627 crore it had reported in the corresponding quarter of the previous fiscal.
 
Emami’s expenses during the quarter also shot up to Rs 439 crore from Rs 427 crore it had posted in the year-ago period.

Commenting on the results, Emami Director Mohan Goenka in a statement said, "Our growth in the first half of 2018-19 has been modest. Rising input cost of key raw materials has been a challenge. Wholesale recovery has been moderate and is expected to pick up further. While Modern Trade performance has been good, rural too, is picking up. With erratic monsoon and winter being slightly delayed, offtakes were affected."
 
Emami Director Harsha V Agarwal, added, "Our male grooming range has performed well during the quarter. Younger brands and brand extensions like Fair and Handsome Face Wash, HE Deo and 7 Oils-in-One have contributed significantly during this period.”
 
During the quarter, Emami strengthened its foothold in the Indian market by increasing its direct reach to over 9 lac outlets. With the increase in outlets, Emami is hoping to close the year on a high and expects double-digit growth in the second half of the fiscal year 2018-19.