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Emami Q3 net up 5 pc at Rs 144 cr

Feb 7, 2020, 14:28 IST
PTI
New Delhi, Feb 7 () Homegrown FMCG major Emami Ltd on Friday reported a 5 per cent increase in its consolidated net profit at Rs 144.44 crore for the third quarter ended December 31, 2019 helped by rise in gross margins and cost control measures.

It had reported a net profit of Rs 137.54 crore in October-December quarter a year ago, Emami said in a BSE filing.

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Its total income was at Rs 828.22 crore, up 1.02 per cent, during the quarter under review, as against Rs 819.83 crore in the corresponding period of the previous fiscal.

The company posted resilient growth during the quarter despite ongoing challenges such as overall weak consumption environment in the domestic business, weak rural demand, liquidity concerns and hike in food inflation, Emami said in a post earning statement.

"However, delayed onset of winters impacted the sales of winter portfolio leading to an overall flat revenue growth in Q3FY20 with consolidated revenues at Rs 813 crore," it added.

Nearly 65 per cent of the portfolio (excluding winter products) grew by 8 per cent, Emami said.

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"While lower raw material costs helped the company to increase its gross margins, ongoing cost control measures are expected to aide profitability in the coming quarters," Emami Director Harsha V Agarwal said.

Emami's total expenes was marginally up at Rs 548.62 in Q3/FY 2019-20 as against Rs 547.67 crore.

"Our international business and modern trade channel continues to perform well and we are hopeful that in the next 2-3 quarters, the overall consumption environment will improve to drive offtake," said Emami Director Mohan Goenka.

Shares of Emami Ltd on Friday were trading at Rs 301 on BSE in afternoon trade, down 0.64 per cent from the previous close. KRH DRR

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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