Due to weak demand, FMCG giant Emami Limited reported a 60% decline in its combined net profit for the three months that ended in March 2023, to Rs 142 crore.
In the same quarter of FY22, the business reported a consolidated net profit of Rs 354 crore.
From the Rs 768 crore recorded in Q4 of FY22, operating revenue increased by 9% to Rs 836 crore during the quarter.
The firm blamed the drop in net profit on the weak demand for personal care goods and the widespread flooding in March that affected the market for summer items.
“Rural inflation topped urban inflation for the first time since FY18 in FY23, when it rose to 6.8%, the highest level in the preceding nine years. The firm said in a statement that severe rain in various regions of the nation in March had an influence on the market for summer items.
“We have generated a solid profit-led rise in Q4 FY23 despite the adverse demand backdrop brought on by high inflation, subdued rural morale, and unseasonal rains. After a few quarters of sustained pressure on input prices, we were able to increase our gross and EBIDTA margins, resulting in 20% EBIDTA growth, said Harsha V. Agarwal, vice-chairman and MD of Emami.
The company's overall sales increased by 7% to Rs 3,406 crore for the whole year. From Rs 836 crore the year before to Rs 627 crore in FY23, net profit decreased.
According to the statement, the gross margins in FY23 were 64.7%, down by 160 basis points as a result of inflationary pressure and an unfavourable portfolio mix in the first three quarters.
On a greater base of COVID contextual categories, such as in the pain management and healthcare spectrum, the domestic business increased by 4% in FY23, it was said.
