Emami Limited has reported a 19% increase in its profit after tax (PAT), reaching Rs 213 crore in Q2FY25. This is despite the ongoing challenges posed by high food inflation and global political unrest, which impacted consumer spending. The company’s growth reflects its strong performance in other areas, especially in organized channels like modern trade, e-commerce, and institutional sales.
Emami Profit in Q2FY25
In Q2FY25, Emami’s earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 7% to Rs 250 crore. The company’s EBITDA margin also expanded by 110 basis points to reach 28.1%. Domestic business contributed significantly, with organized channels now making up 26.6% of Emami’s domestic revenue. Despite difficult macroeconomic conditions, Emami reported a 6% growth in overall revenue for the first half of the year.
Strong Performance
Emami’s domestic business grew by 2.6% in the quarter, with major brands like Navratna, Dermicool, and its healthcare and pain management range performing well. The company’s innovation efforts also continued, with 11 new products launched in the quarter. In the healthcare segment, new products like Zandu Daily Health Super Greens and Zandu Hair Growth Serum were introduced, along with a relaunch of BoroPlus Soft.
Emami’s international business performed well, despite geopolitical challenges. The company’s international revenue grew by 12%, excluding Bangladesh. Strong growth in the MENA region helped the company achieve these positive results.
Outlook for the Future
Emami remains optimistic about the second half of FY25, with expectations of stronger demand from rural areas and a more stable season ahead. The company is targeting high single-digit revenue growth and double-digit EBITDA growth for the full fiscal year. Vice Chairman Harsha V Agarwal and Whole-Time Director Mohan Goenka both expressed confidence in Emami’s ability to maintain growth, driven by its expanded product portfolio and resilience in international markets.
Despite facing challenges like inflation and geopolitical disruptions, Emami Q2FY25 results highlight the company’s strong performance and continued growth in both domestic and international markets. With its strategic product launches and a focus on innovation, Emami is set to continue its positive growth trajectory in the second half of FY25.
