In This Article:
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Core Domestic Business Growth: 8.6% growth with a volume increase of around 6%.
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Male Grooming Decline: Decreased by 4%.
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Kesh King Decline: Decreased by 10%.
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BoroPlus Growth: Increased by 20%.
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Healthcare Range Growth: Increased by 13%, led by 90% growth in Zandu Care.
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Navratna and Pain Management Growth: Each grew by 3%.
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Consolidated Revenues for Q3: INR1,049 crores, with a growth of 5%.
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Gross Margin Expansion: Expanded by 150 basis points to 70.3%.
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EBITDA Growth: Increased by 8% to INR339 crores, with margins expanding by 70 basis points.
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Profit After Tax (PAT) Growth: Increased by 8% to INR279 crores.
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Distribution Channel Contribution: Modern trade, e-commerce, and institutional sales contributed 28.6% of domestic business, an increase of 160 basis points.
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Interim Dividend: Second interim dividend of 400%, translating to INR4 per equity share for FY24.
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Cumulative Dividends for FY24: 800%, equivalent to INR8 per share.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Emami Ltd (BOM:531162) achieved a robust growth of 8.6% in its core domestic business with a volume growth of around 6%.
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The BoroPlus range demonstrated remarkable resilience, growing by 20% despite delayed and mild winters.
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The healthcare range delivered robust growth of 13%, led by a 90% growth in Zandu Care.
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Gross margins expanded by 150 basis points to 70.3%, and EBITDA grew by 8% to INR339 crores.
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The company declared a second interim dividend of 400%, translating to INR4 per equity share for FY24, reaffirming its commitment to maximizing shareholders' return.
Negative Points
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Urban demand remained subdued, impacted by rising food inflation and cash-strapped retail and wholesale trade.
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Male Grooming and Kesh King segments declined by 4% and 10% respectively during the quarter.
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International business revenues declined by 3%, with significant challenges in the Russian market due to high inflation.
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The Man Company faced challenges due to compressed festive activities and a delayed shift to quick commerce.
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Kesh King continues to face category issues, with the entire oil category experiencing a slowdown.
Q & A Highlights
Q: Congrats on good volume growth and overall momentum. My first question is on the two segments which have done well this quarter, one is BoroPlus 20% growth and healthcare 13% growth. Is this due to a favorable base effect, market share expansion, or new product launches? How do you see Q4 for these two businesses? A: Mohan Goenka, Vice Chairman of the Board, Whole Time Director: BoroPlus growth is led by the core antiseptic cream, growing phenomenally in double digits. The base was low, but the 20% growth is exciting. This momentum continues in Q4. Healthcare has consistently shown double-digit growth, led by Zandu Care. We expect double-digit growth in both BoroPlus and healthcare this quarter.