Consumer goods company Emami will be reporting its second-quarter results on Tuesday and analysts' expect muted earnings this time around.
Here are the key expectations:
- For Emami, muted quarter is expected. Emami trades at 24 times FY20 earnings, so muted quarter expected on a high base.
- Revenue growth of just about 1-1.5 percent expected by the street anywhere around Rs 635-640 crore is on the cards. EBITDA is likely to decline by about 7-7.5 percent, the number that the street is working with is close to around Rs 190 crore mark.
- Emami enjoys the highest gross margins in the industry, spends the maximum amount of its revenue on advertising and has the highest EBITDA margins out there. A correction of about 270 basis points (bps) is on the cards. On the back of that, 21 percent decline in the net profit is what the street is working with.
- Domestic volume growth is seen to decline anywhere between 3 percent and 5 percent.