'Intense summer' spurs Emami Q1 net up 127%

Written by fe Bureau | Kolkata | Updated: Jul 31 2010, 06:35am hrs
Kolkata-based diversified FMCG major Emami on Friday posted a 126.7% rise in net profit at Rs 35.25 crore for the April-June quarter of 2010-11, compared to Rs 15.55 crore in the corresponding period last fiscal. Its net sales for the quarter were at Rs 242 crore compared to Rs 189 crore in the same period last year.

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.