Emami Posts Decent Numbers For Q1FY14

Emami has come out with decent set of numbers for Q1FY14. The total income jumped by 13.23% on a YoY basis to stand at Rs 383.65 crore as against Rs 338.83 crore during the same quarter last fiscal. The EBITDA stood at Rs 84.73 crore which shot up by 18% on a YoY basis. The EBITDA margins stood at 22.09% which gained 89 basis points on a YoY basis. The bottomline witnessed healthy growth of 30.17% on a yearly basis to stand at Rs 60.67 crore as against Rs 46.61 crore for Q1FY14.

The raw material cost as a percentage of total income have been on the better side to stand at 24.95% for this quarter as compared to 30.52% witnessed during Q1FY13 declining by 557 basis points. Also the finance cost stood at Rs 1.17 crore down by 74% on a YoY basis.

Domestic business has grown at a decent pace. However, the early monsoon in June this year impacted the growth of summer brands which contribute bulk of revenues in the first quarter. The domestic business grew at a lower rate of 12%. International business, grew at 25% on a yearly basis. Navratna Oil's market share increased around 150 bps YoY to 57% during the quarter. Navranta Cool Talc also increased its market share by 520 bps to 23%.

With increased emphasis, improved visibility and focused execution, the Modern Trade business has registered a strong growth of 50% during the quarter. The direct rural business has also shown a strong growth of 19% which is now contributing around 26% of the total revenues.

The board of the company has approved the issue of bonus shares in the ratio of 1 equity share against every 2 equity shares held by shareholders. The company has also declared a dividend of Rs 8 per share. The stock closed at Rs 445 declining by 4% on the BSE.