homebusiness Newscompanies NewsEmami expects high single digit revenue growth in FY24, better margins
Emami expects high single digit revenue growth in FY24, better margins
The company is factoring in a price rise of around 3% for the fiscal year, with the remaining growth being driven by increased volumes.
Emami reported its consolidated financial results for the July-September quarter of fiscal year 2024. The company's net profit was almost flat year-on-year (YoY) at around ₹180 crore. Total revenue grew 6% to ₹864.47 crore largely due to the company's efforts to expand its brand portfolio and enhance core brand equity through various channels, including modern trade, e-commerce, and general trade.
EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 20% over last year to ₹234 crore with margin improving 300 basis points year-on-year to 27%. One basis point is one-hundredth of a percentage point. Gross margins expanded 350 basis points to 70.1%.
NH Bhansali, the company's CEO-Finance, Strategy & Business Development, told CNBC-TV18 that the upcoming winter season is expected to boost sales significantly. "Winter products account for 60% of sales. We now have the winter setting in, and we expect by the end of this month, that winter should be in full swing and should help improve our offtakes further," he said.
The top winter products for the company are Boroplus and Chyavanprash.
Revenue growth should be in the high single-digit
Despite the challenges over the past two quarters, such as issues with rural offtakes, inflation, geopolitical situations, and international business disruptions, Emami was able to demonstrate a 4% growth in the domestic market and a constant currency growth of 16% in the quarter. The company expects high single-digit revenue growth for fiscal year 2024.
The company is also factoring in a price rise of around 3% for the fiscal year, with the remaining growth being driven by increased volumes.
The EBITDA margin for the year is expected to improve by 200 basis points.
In September, brokerage firm Citi upgraded its rating on Emami to 'buy' with a revised target price of ₹600 citing improving demand conditions and benefits from investments made toward long-term strategic initiatives. Shares of the company ended the day (November 7) at ₹512 apiece.
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