Commenting on the good results, Mohan Goenka, director, Emami, said the topline had increased by 28% during the quarter, exports had risen 48% to Rs 27 crore and that there was all-round growth. This Q1 was particularly good because summer was intense, he said. Thus, the company saw a 25% rise in sales of its flagship brand Navratna oil. Sales of the Navratna cool talc also grew by 100%. These two brands contributed significantly to Q1 numbers, said Goenka.
With the consolidation of Zandu now complete, the company also saw sales of Zandu Balm increasing by more than 20% in the quarter. Zandu has come into the Emami distribution fold and seen sales rise, said Goenka. One reason for growth, according to analysts, is that the company largely operates in niche categories and faces no competition from the organised players.
During the quarter, advertisement costs also grew by Rs 54 crore, as the company pushed its brands very hard. Exports was another growth area, with Bangladesh, Africa and the Middle East returning good numbers.