The Emami Limited reported a 5% increase in net profit
Emami Limited reported a 5% increase in net profit:
The Emami Limited:
The Emami Limited one of the largest Fast-moving consumer goods(FMCG) reported a 5% increase in its consolidated net profit at Rs 144.44 crore for the third quarter ended on December 31, 2019.
It had reported a net profit of Rs 137.54 crore in October-December quarter a year ago. The 2019 year helped a lot in raising their gross margin and cost control measures, said by Emami Limited.
After increasing its profits it reached Rs 828.22 crore with 1.02% during this quarter. Against the previous amount at Rs 819.83 crore in the same period of the previous financial year.
The company shows solid growth during this quarter without being effected by on-going challenges such as:
- overall weak consumption environment in the domestic business
- weak rural demand
- liquidity concerns and
- hike in food inflation
“However, the delayed winter beginning impacted the sales of winter portfolio leading to overall flat revenue growth in Q3/FY20 with consolidated revenue at Rs 813 crore,” Emami said in a statement.
Besides, nearly 65% of the portfolio grew at 8%, said Emami.
The Director of Emami Mr.Harsha V Agarwal said, “the lower raw material costs helped the company to increase its growth margins and ongoing cost control measures expected profit in the coming quarters”.
Emami’s total expenses were marginally up at Rs 548.62 in Q3/FY 2019-20 as against Rs 547.67 crore.
One of the directors of Emami Mr.Mohan Goenka, “Our international business and modern trade continues to perform well and we are hopeful that in the coming 2-3 quarters, the overall consumption environment will improve for supply”.
The Shares of Emami closed at Rs 298.50 on BSE with a reduction of 1.47% from the previous close.