Emami, on 6 November, announced its quarterly earnings for the July-September quarter for the current fiscal year.

The company reported a consolidated net profit of Rs 179.99 crore for the quarter under review, which is a marginal increase from Rs 180.13 crore reported in the year-ago quarter.

The total revenue of the company saw a 6.23% year-on-year (YoY) to Rs 864.47 crore from Rs 813.75 crore reported in the same quarter last year.

In its regulatory filing, the company said that in the face of a recent decline in net profit, it anticipates improved margins due to moderating inflation. The company’s strategy involves building new brands and enhancing core brand equity through multiple channels, including modern trade, e-commerce, and general trade.

The company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) rose by 20% YoY to Rs 234 crore for the quarter. The EBITDA margins of the company expanded by 300 basis points YoY.

The business invested 26% of its equity in Axiom Ayurveda Pvt Ltd on 29 September. Additionally, Emami revealed that it has joined the juice industry under the “AloFrut” brand, which is currently sold as a beverage products and is marketed by Axiom. The partnership is expected to enhance its market presence through various trade channels.

Harsha V Agarwal, Vice Chairman and Managing Director, said, “In this dynamic and challenging environment, our results exemplify our dedication to growth and innovation, marked by a good increase in both volumes and revenues. Strong performance by both Modern Trade and e-commerce has led to a decent revenue growth of 6 percent and an impressive constant currency growth of 16 percent in our international business during this quarter.”

Domestic Business grew by 4% in the reviewed quarter, owing primarily to a 2% increase in volume. This growth was especially noticeable in urban markets such as Modern Trade and E-commerce. The international business grew by 12%, primarily due to strong results in the SAARC and MENAP regions, translating to a constant currency growth of 16%.

Several innovative digital-first products were introduced in the Domestic business during the quarter, including Glycerine bathing bars in the BoroPlus range, an Organic Onion hair mask under the Kesh King brand, and ten new products on the Zanducare portal. The company launched three new products in international markets under the Creme 21 brand. Furthermore, with its investment in Axiom Ayurveda Pvt Ltd, the company entered the juice category, acquiring a 26% equity stake. Axiom sells “AloFrut,” a refreshing and healthy blend of aloe vera pulp and fruit blends.

By taking a cautious approach to managing raw material costs and making wise price adjustments, the company was able to increase gross margins by 350 basis points to 70.1%. With margins rising by 300 basis points to 27.0%, EBITDA for the quarter increased significantly to Rs 234 crore or a 20% increase.

The Board of Directors of the company have also declared an interim dividend of Rs 4 per share in recognition of the company’s outstanding performance.

An interim dividend of 400%, or Rs 4 per share for FY24, was declared by the Board of Directors in recognition of the company’s outstanding performance.