Emami is confident of double-digit growth in FY22 on pent up demand, said Mohan Goenka, director of one of the major skin and healthcare company, on Wednesday.
The company reported good fourth-quarter earnings on a favourable base with 33 percent volume growth in the domestic business and the margins have also expanded significantly at 22 percent.
Speaking in an interview with CNBC-TV18, Goenka said, “Despite what we have seen in the first wave (COVID-19), the demand bounced back as soon as the COVID cases came down. Therefore, we are expecting that if from June 1 unlocking happens, we have some summer season still (for summer products). If I take everything into consideration, I am very hopeful we would be able to deliver a double-digit volume growth, which I am confident of.”
On demand, he said, “Compared to the first wave this time the rural has been impacted quite a bit and we are seeing this across geographies, but now that unlocking is going to start with the (COVID) cases going down, the rural demand should pick up quickly.”
Goenka expects e-commerce to reach 6 percent of sales in the next 2-3 years.
“Over the last one year we have worked hard in reducing our cost and we have had an all-time high margin of almost 30 percent EBITDA that we have seen. Therefore, we should be able to retain our margins and that’s our target for the next year,” said Goenka.
For the entire management interview, watch the video