Emami weathers GST rollout, Q2 profit surges 50% to Rs99 crore
New Delhi: Fast-moving consumer goods (FMCG) firm Emami Ltd Wednesday reported a 49.68% jump in its consolidated net profit to Rs98.60 crore for the second quarter ended 30 September, mainly on account of higher income.
The company had posted a net profit of Rs65.87 crore during the July-September quarter of previous fiscal, Emami said in a regulatory filing. Total income during the period increased by 6.97% to Rs633.46 crore as against Rs592.16 crore in the same period last fiscal.
“After a challenging Q1 faced with GST apprehensions resulting in substantial wholesale destocking, in the second quarter, we have recovered significantly. Both topline and bottomline have registered handsome growth at around 14 per cent and 49 per cent, respectively,” Emami Ltd director Mohan Goenka said.
He further said post goods and services tax (GST), the wholesale channels are yet to recover completely from the impact, which the company expects to improve in the second half of the year. Revenue from operations, including GST, during the quarter was Rs712.48 crore. It was Rs625.34 crore in the year-ago period.
“Despite a challenging business environment, the company reported steady growth during the quarter delivering a robust volume growth of 10 per cent with total revenues (including GST/ VAT) growing by 14 per cent,” Emami said. Destocking in Canteen Stores Department (CSD) and wholesale channel disruption, however, continues, it added. Shares of the company closed 2.04% up at Rs1,160 on BSE.