Emami Q4 PAT At Rs 111 Crore, Up By 18%

FMCG major Emami, one of the leading Skincare and Healthcare company announced its result for the quarter ended March 2014 on yesterday (May 5, 2014).  The result was announced after the market hours. The result shows that the company has posted a mixed set of numbers for this quarter. Today the scrip of the company opened at Rs 474, up by 1.5% from its previous close.

Emami posted a topline of Rs 446 crore during Q4FY14, reporting a marginal fall of 1.2% on yearly basis. The topline plunged mainly due to decrease in volume sales. The sales decreased due to non-favourable season and moderation in growth in FMCG sectors. Erratic winter and delayed summer impacted the business of seasonal brands and this led to marginal decline in revenues during the fourth quarter.

The domestic revenue of the company has de-grown by 4% this quarter while the volume was down by 10% during this quarter as compared to corresponding quarter of previous year. On segment wise the cooling oil segment (de-grew by 6%), talcum (de-grew by 10%), balms (de-grew by 5%) and fair and handsome (de-grew by 2%) has not performed well during this quarter as compared to corresponding quarter of previous year. Whereas, the segment which gave some relief was Zandu Healthcare division up by 62 % in this quarter and Zandu Pancharishta revenue grew three times during this quarter as compared to same period of previous year. With aggressive growth in Gulf Co-operation Council (GCC) countries and South Asian Association for Regional Co-operation (SAARC) countries the international business continued to grow at 9% during this quarter.

The EBITDA stood at Rs 118 crore in Q4FY14, showing a de-growth of 6% YoY and PAT was at Rs 111 crore, up by 18.3% respectively over corresponding quarter of previous year. The gross margins remained under pressure, plunging by 136 basis points standing to 26.47% during Q4FY14 as compared to same quarter of previous year. The gross margin reduced due to increase in cost of raw material as a percentage of sales, which was up by 273 basis points at 36.43% for Q4FY14 compared to 33.7% during Q4FY13. The advertisement as a percentage to sales has increased marginally by 25 basis points to 11% for Q4FY14. 

The company during the quarter launched Zandu vigorex, Boroplus Anti Pollution Face Wash, and Fair and Handsome Face Wash. Also a new oil category of 7-in-one Damage Control Hair Oil was also launched in this quarter. The company also proposed to launch 7-8 new products during the FY15.

On the performance of the company Mohan Goenka, Director said, "In this depressed market environment, characterised by sluggish economy, high inflation and erratic weather, Emami has strengthened market shares in key categories, conserved resources and delivered good profits with marginal sales decline." 

The board has recommended dividend of Rs 4 per share. The shares of the company yesterday closed at Rs 467 a piece on BSE, down by 0.91% from its previous close.