Fast moving consumer goods company Emami on Monday reported a net profit of Rs 77.79 crore for the quarter ended June 30, marking a jump of 96.44 percent on a year-on-year basis. The company said it was one of its most profitable quarters.
Revenue from operations came in at Rs 660.95 crore for the first quarter of the current financial year, marking a 37.31 percent increase compared with Rs 481.34 crore a year ago.
Strong profit helped it mitigate the impact of the challenges due to the second wave of the pandemic, the company said in a release.
Net sales in the domestic business grew 42 percent and those in its international business rose 17 percent, Emami said.
Emami said it had increased its strategic stake in Helios Lifestyle (The Man Company) to 45.96 percent from from 33.09 percent.
“We are very happy that despite challenges, we could post one of our most profitable quarterly results. Our profitability was not only higher than the base quarter, which was impacted by the nationwide lockdown, but also much superior to the normal first quarter of FY20," said Mohan Goenka, Director, Emami.
The overall demand since early June has once again been showing improvement with the coronavirus infection rates dropping to pre-second wave levels, he said. "We also posted record profits during the quarter despite high input cost pressure, which highlights our resilience,” Goenka added.
Total expenses increased 37.08 percent to Rs 49.12 crore, according to the regulatory filing.
The company said its EBIDTA grew 38 percent with margins at 25.7 percent, up by 20 bps.
The company's margins grew on a sequential as well as year-on-year basis despite raw material cost pressure and higher ad spends.
Emami shares jumped more than 3 percent to hit a 52-week high of Rs 579 apiece on BSE after the earnings announcement.