Emami's Leading Brands in Limelight after Q1 Performance

Emami deals in personal and healthcare consumer products industry . The company is also engaged in the manufacturing and marketing of health, beauty and personal care products that are based entirely on Ayurveda formulation. Emami has over 30 brands under its portfolio which includes Navratna Oil, Boroplus Antiseptic Cream, Fair and Handsome, Navratna Cool Talc, Sona Chandi Chyawanprash, Zandu Balm, Himani Fast Relief, Emami Healthy & Fair, Emami Malai Kesar Cold Cream, Lalima, Sardi Ja and Zandu Pancharishta, hair care, skin creams, soaps and lotions, talcum powder and ayurvedic healthcare products.

Recently Emami announced its First Quarter FY16 result, the Net Sales rose by 22.44 per cent to Rs 589.87 crore in the first quarter, from Rs 481.73 crore in the year-ago period. During the quarter, Emami's domestic business grew 23.4 per cent while international operations paced up at 21.8 per cent. The total expenses increased by 24.7 per cent to Rs 513 crore year on year basis. The EBITDA rose by 33 per cent to Rs 99.69 crore as compared to Rs 75 crore, EBITDA margin expanded by 133 basis points to 16.9 per cent year on year basis.

Emami reported a 23.92 per cent increase in consolidated net profit at Rs 87.75 crore for the first quarter ended June 2015 against Rs 70.81 crore in Q1FY15, on the back of strong performance of its leading brands and growth in international business.

"Strong performance by all our power brands in key categories, coupled with growth in international business, has helped us register a 22.4 per cent top line growth," Emami Director Mohan Goenka said in a statement.

On sequential basis the company posted unsatisfactory performance, the net sales rose by 6.54 per cent to Rs 590 crore compared to Rs 554 crore. The total expesses increased by 20.8 per cent mainly due to increased in advertising and sales promotion expenses by 72.25 per cent to Rs 142.06 crore. The EBITDA decreased by 28.93 per cent to Rs 99.69 crore, the EBITDA margin contracted by 844 basis points to 16.9 per cent. The net profit reduced by 36.56 per cent to Rs 87.75 crore against Rs 138.33 crore Q-o-Q basis.

The company's power brands included Navratna Oil, Zandu Balm and Fair & Handsome. Emami acquired hair and scalp care brand Kesh King for Rs 1,684 crore in the quarter under review.