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Authors: JordanKolkata: Emami Ltd reported a decline in net profit by more than 27% to Rs 60.86 crore for the fourth quarter ending March 2018 from Rs 83.3 crore in the same period last year which the makers of Navratna and BoroPlus attributed to writing off MAT credit entitlement of Rs 14 crore.
The Kolkata-based FMCG firm’s revenue went up by 12% to Rs 616.98 crore including the GST and VAT components, with the domestic business growing by 10% led by Navratna, the pain management range, male grooming range, Kesh King and 7 Oils in One.
The Emami scrip dipped on the bourses closing at Rs 1085.5 on the Bombay Stock Exchange, dipping by 2.05% on Thursday.
In 2017-18, Emami’s revenue from operations grew marginally at less than 1% to Rs 2540.83 crore (Rs 2527.74 crore), while net profit dipped by more than 9% to Rs 307.51 crore.
Emami director Mohan Goenka said most of the company’s brands registered a good growth in the fourth quarter.
“The consumption environment for the industry has overall been positive with rural business chartering the growth path,” he said.
The company has increased direct reach to 8.5 lakh outlets, which it said will help to reduce dependency on wholesale channel, he said.
Harsha V Agarwal, director at Emami said the company expects the momentum to continue next fiscal.
“With GST stabilisation, normal monsoon expectation coupled with higher government spending, FMCG is poised for a good growth…Strategic investment in upcoming growth segments through start-ups will help the company to grow further in years to come.”
The company has forayed in the growing professional salon segment by making a strategic investment in Brillare Science Pvt Ltd which sells premium hair and skin beauty products that are used and sold in professional salons.
In the previous quarter, it had acquired a strategic stake in The Man Company, an online male grooming company.
The Emami board recommended issue of bonus shares in the ratio of 1:1 and also announced dividend at 700% which is Rs 7 per share.
