Emami hires PwC to advise on GST impact
Emami says it might not be impacted by GST if the peak rate under the new tax regime is kept at 18%
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Kolkata: Consumer goods maker Emami Ltd on Wednesday told shareholders that it has hired consulting firm PricewaterhouseCoopers, or PwC, to advise it on streamlining operations after the introduction of goods and services tax (GST).
The company might not be impacted by GST if the peak rate under the new tax regime is kept at 18%, said Mohan Goenka, Emami’s executive director. Though the company sells a variety of products, which attract different rates of tax, the net effect is likely to be neutral, he added. PwC has also been given the mandate to draw up new growth strategies, said Aditya Agarwal, another director.
The company on Wednesday reported a 34.6% year-on-year decline in its net profit in the June quarter from Rs.86.61 crore to Rs.56.65 crore largely on account of a Rs.60.9 crore provision towards goodwill of an acquired brand.
Emami’s cash profit, however, grew 17.5% to Rs.128.17 crore from Rs.109.1 crore a year ago, as revenue jumped 19.9% to Rs.644 crore.
In the current year, Emami has budgeted for a capital expenditure of Rs.300 crore on a factory in Assam, which is to be commissioned next year, according to Naresh Bhansali, chief financial officer.