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Earnings

Emami Q2 results preview: Net profit likely to fall 21%

Updated : October 30, 2018 08:24:32 IST

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.

 

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