Burdened by interest costs, Kolkata-based FMCG company Emami Ltd reported a net profit of Rs 4 crore for the first quarter of 2009-10 compared to Rs 11 crore in the same period last year.
But consolidated turnover for the quarter was at Rs 187.1 crore, up 48.6% which includes inorganic growth of 25.3%. ?We incurred an interest cost of Rs 13 crore this quarter,? said Mohan Goenka, director, Emami. He said the company had registered a topline growth of 24% and EBIDTA of 79%, ?which is a very good sign.?
Goenka said the company had raised Rs 310 crore through the QIP route and used the entire money to clear off debt. ?We had debt of Rs 550 crore, now that has been reduced to Rs 220 crore.?
Goenka said he expected the company to be a zero-debt company by the end of the fiscal.
The director said Emami had recorded substantial growth from its power brands like Fair and Handsome, Navratna Oil, Boroplus Antiseptic Cream, Menthoplus Balm and other products like Navratna Extra Thanda Oil and Navratna Cool Talc. Goenka said in the following quarter one of the main tasks would be the integration of Zandu Pharmaceuticals.
?It will take another four to five months,? he pointed out.
For Emami, its international business with revenues of Rs 18 cr grew 21% during the quarter. Growth is coming mainly from Middle East and Africa, and markets like Ukraine, Russia and Nepal.