Latest news with #Emami
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Business Standard
27-05-2025
- Business
- Business Standard
Emami, HUL, ITC: Is early monsoon good news for FMCG stocks? Analysts weigh
The early arrival of monsoon in India this year, as per the forecasts by the India Meteorological Department (IMD), may have a mixed impact on fast-moving consumer goods (FMCG) companies, believe analysts. Monsoon hit Kerala on Saturday, May 24, 2025, marking the earliest arrival over the Indian mainland since 2009, IMD announced. Further, it has advanced in Karnataka, Goa, parts of Maharashtra, parts of west-central and north Bay of Bengal, and some parts of Mizoram, Manipur, and Nagaland within 24 hours, a record advancement. This, analysts said, could be beneficial to agri-related and/or staple-focussed FMCG companies, while it may hurt those FMCG players that are more skewed towards summer portfolios. How will early monsoon affect FMCG companies? Normally, the summer months from April to June drive strong demand for summer-centric products such as cold beverages, ice creams, talcum powders, and others. On the other hand, agri-related segments look forward to good monsoons as it is vital for better yields, and stronger harvests. FMCG companies closely monitor the monsoon as it has a direct impact on rural demand, raw material costs, and overall sales performance. "The early onset of the monsoon could affect companies with summer-centric portfolios, though it will be limited to the current quarter only. Over the medium-term, they should be able to make it up in the other categories," said Ajay Thakur, lead analyst - consumer staples, Anand Rathi Shares and Stock Brokers. Emami and Zydus Wellness are among the few companies that could be impacted more by the early monsoon, according to Thakur. Emami's summer-linked products include Dermicool Prickly Heat Powder with a 14 per cent market share by volume, and Navratna Cool Talc with 62.8 per cent market share by volume, according to its 2023-2024 annual report. Zydus Wellness' summer portfolio, meanwhile, includes products such as Nycil Prickly Heat Powder (35 per cent market share) and Glucon D (59.5 per cent market share). On the contrary, an early and stronger-than-usual monsoon could help improve the sowing of Kharif crops, raise reservoir levels, and boost rural demand. "This will help FMCG companies improve volumes in rural areas (which has been flat for many quarters)," said Amit Agarwal, senior vice president - fundamental research, Kotak Securities. That said, reports suggest that India's monsoon rains have lost momentum after covering western regions ahead of schedule, and their arrival in northern and central states could be delayed, extending a heatwave in the grain-growing plains. What's ahead for FMCG companies? Ajay Thakur of Anand Rathi Stock Brokers expects urban demand to recover in Q2FY26 and in the second half of FY26 on the back of good monsoon and government initiatives in terms of consumption boost coming into play. He recommends buying Emami and Zydus Wellness at current levels from a long-term perspective as valuations remain attractive and earnings growth is reasonably good for both. So far in 2025, the Nifty FMCG has gained 0.05 per cent as against Nifty50's rise of 5.2 per cent. According to market research firm NielsenIQ, demand for FMCG in rural India stood at 8.4 per cent in the March quarter, compared to 9.2 per cent in October-December of 2024. Urban demand growth moderated to 2.6 per cent, compared to 4.2 per cent in the October-December quarter. "We expect urban demand to start showing better traction from Q2 onwards, or more towards H2 onwards," said Thakur. That apart, the government's support to improve consumption, driven by increasing income threshold to claim tax rebates as announced during the Union Budget for 2025-26, aids long-term growth outlook.
Fashion Network
19-05-2025
- Business
- Fashion Network
Emami Ltd Q4 net profit rises 11 percent to Rs 162 crore
FMCG firm Emami Ltd reported a 11 percent increase in consolidated net profit at Rs 162 crore ($19 million) for the March quarter of financial year 2025, as against Rs 147 crore in the year-ago quarter. The company's revenue for the quarter rose to Rs 963 crore as against Rs 891 crore in the corresponding quarter of the previous fiscal year. Emami's total expenses for the quarter witnessed a 9 percent year-on-year increase at Rs 744 crore. For the financial year 2025, Emami's net profit increased by 11 percent to Rs 802 crore from Rs 724 crore while total income increased by 7 percent to Rs 3,877 crore. Commenting on the results, Harsha V Agarwal, managing director of Emami Ltd in a statement said, 'Our core domestic business continued to demonstrate strong momentum, delivering robust double-digit growth of 11% in Q4FY25, supported by healthy volume growth of 7%. Despite ongoing geopolitical challenges, our international business also posted a resilient 6% growth during the quarter.' 'Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies,' he added. Founded in 1974, Emami Ltd offers personal care products through its portfolio of brands that includes Navratna, Boroplus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King among others.
Mint
19-05-2025
- Business
- Mint
Emami's growth plans set to hit a weather bump
Emami Ltd is focusing more on new categories—rebranding and ramping up its presence in faster channels like e-commerce and quick commerce. But for all of this to yield meaningful results, demand needs to pick up amid a softer inflation outlook and rural rebound. But summer, typically a good quarter for Emami, has started on a patchy note. April and May brought unseasonal rains, denting demand for core summer products such as talc powders, especially in the weather-sensitive southern and eastern states; although oils fared slightly better. Still, the March quarter (Q4FY25) wasn't a washout with consolidated sales up 8% year-on-year to ₹960 crore. Domestic net sales were up 9% and volume by 5%. Rural India held up, while urban demand stayed sluggish. Modern trade, e-commerce, and institutional sales, now contributing about 29% of its domestic revenue, grew steadily by 10%. Also Read: JSW Energy's expected Ebitda growth to be fueled by debt binge Within the core domestic portfolio, BoroPlus surged 27%, helped by an extended winter. Navratna and Dermicool together clocked a 16% rise,Zandu Care grew over 50%, now with half its revenue coming from new launches in the past two years. Even 'Smart and Handsome', newly rebranded, finally reversed its slide, growing 7%. International, too, bounced back, growing 6% in Q4 after a rough Q3. Buoyed by momentum, after 25+ launches in FY25, FY26 will see more, especially in male grooming, healthcare, and skin brightening. In Q4FY25, the company entered into the skinbrightening category with the launch of Emami Pure Glow. Pain persists But cracks remain. Pain management was flattish in Q4FY25 and even FY25. Kesh King declined 9% in FY25, with a BCG-led strategy to be rolled out in Q2FY26. The Man Company and Brillare, Emami's direct-to-consumer brands, clocked a revenue of ₹200 crore in FY25 but remain loss-making. The management expects strong double-digit sales growth from these businesses in FY26. Also Read: Tata Power's solar cell plant fuels Q4 earnings, sets stage for FY26 growth Gross margin was up slightly by 11 basis points (bps) on-year to 65.9% in Q4FY25, helped by benign commodity prices and pricing actions. Ebitda (earnings before interest, taxes, depreciation, and amortisation) grew 4%, accompanied by a 90bps drop in margin to 22.8%. One basis point is one hundredth of a percentage point. Benign raw material prices should act as a cushion to margin, although how demand pans out is crucial. 'Valuation appears attractive at 30x 1-year forward earnings per share (EPS). However, consistency in revenue trend is a must for a sustained re-rating of the stock to the sector average," said analysts from Jefferies India in a report on 16 brand ambitions are looking brighter, but FY26 is off to a cautious start. Also Read: Are Muthoot Finance investors worried about falling gold prices?
Time of India
17-05-2025
- Business
- Time of India
Emami Q4 profit up 10.5% to Rs 162 cr
HighlightsEmami Limited reported a 10.5 percent increase in consolidated profit after tax, reaching Rs 162.17 crore for the March quarter of FY25, driven by a robust 11 percent growth in its core domestic business. The company's total income rose by 6.9 percent to Rs 3,877.30 crore in FY25, with organized trade channels contributing significantly to domestic revenues, expanding by 140 basis points year-on-year. Emami Limited's board approved a special interim dividend of Rs 2 per equity share for the 2024-25 fiscal year, while the company celebrates its 50th anniversary. Homegrown FMCG firm Emami Ltd on Friday reported 10.5 per cent increase in consolidated profit after tax at Rs 162.17 crore for March quarter FY25, helped by a volume growth in its core business. The company had posted a PAT of Rs 146.75 crore for the January-March period a year ago, according to a regulatory filing from Emami. Revenue from operations was at Rs 963.05 crore in the quarter as against Rs 891.24 crore in the year-ago period. Total expenses were at Rs 743.61 crore, up 9.3 per cent year-on-year. Total income, which includes other income, was up 9.12 per cent to Rs 984.21 crore. "Despite tepid urban mass demand, Emami demonstrated resilient performance, leveraging its strategic brand portfolio, agile execution, and omni-channel distribution capabilities with the company's core domestic business delivering robust double-digit growth of 11 per cent," Emami said in an earning statement. This was "coupled with a healthy volume growth of around 7 per cent led by key brands such as Navratna, Dermicool, BoroPlus and Healthcare range," it added. Emami's international business posted a 6 per cent growth in Q4FY25, demonstrating resilience in the face of geopolitical volatility across Bangladesh, the Middle East, and parts of Africa. It had a strong momentum across SAARC, SEA, CIS, and African markets, said Emami. In FY25, Emami's PAT increased 10.85 per cent to Rs 802.74 crore from Rs 724.14 crore a year ago. Total income rose 6.9 per cent to Rs 3,877.30 crore. Organised trade channels, comprising Modern Trade, e-Commerce, and Institutional Sales contributed 27.6 per cent to the domestic revenues in FY25, expanding by 140 basis points over the previous year. "Growth in these channels outpaced overall domestic growth, clocking 13 per cent YoY growth," it said. Commenting on the result, Vice Chairman and Managing Director Harsha V Agarwal said, core domestic business continued to demonstrate strong momentum in Q4FY25, supported by healthy volume growth of 7 per cent. "Our input costs broadly remain under control and do not pose any major challenge in the near future. Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies," he said. For the strategic subsidiaries, Emami is scaling marketplace and quick commerce presence, while driving cost efficiencies as well as launch new products in the next 3-6 months to tap into evolving consumer trends. "We expect a gradual pickup in consumption, supported by easing inflation, recent income tax benefits, higher government capex, and a more accommodative monetary policy, including potential rate cuts," he said. On the outlook, Emami said it remains confident of navigating short-term macro uncertainties through portfolio premiumisation, innovation acceleration, enhanced channel productivity, and strategic international expansion. The board of Emami also approved payment of a special (interim) dividend of Rs 2 per equity share of face value of Re 1 each for 2024-25, while celebrating 50 years of the company. Shares of Emami Ltd ended at Rs 637 apiece, up 1.07 per cent on the BSE.>
Business Standard
17-05-2025
- Business
- Business Standard
Emami consolidated net profit rises 8.91% in the March 2025 quarter
Sales rise 8.06% to Rs 963.05 crore Net profit of Emami rose 8.91% to Rs 162.17 crore in the quarter ended March 2025 as against Rs 148.90 crore during the previous quarter ended March 2024. Sales rose 8.06% to Rs 963.05 crore in the quarter ended March 2025 as against Rs 891.24 crore during the previous quarter ended March 2024. For the full year,net profit rose 11.46% to Rs 806.46 crore in the year ended March 2025 as against Rs 723.53 crore during the previous year ended March 2024. Sales rose 6.46% to Rs 3809.19 crore in the year ended March 2025 as against Rs 3578.09 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 963.05891.24 8 3809.193578.09 6 OPM % 22.7223.50 - 26.6026.43 - PBDT 237.23217.23 9 1072.07982.63 9 PBT 193.70169.23 14 893.86796.73 12 NP 162.17148.90 9 806.46723.53 11
