homebusiness Newscompanies NewsEmami posts higher net profit boosted by nearly Rs 300 crore tax credit

Emami posts higher net profit boosted by nearly Rs 300 crore tax credit

The company said, owing to the recognition of the minimum alternate tax credit entitlement of the earlier years, tax liability was lower and net profit higher by Rs 230.33 crore.

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By CNBCTV18.COM  May 13, 2022 7:28:34 PM IST (Published)

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Emami posts higher net profit boosted by nearly Rs 300 crore tax credit
FMCG major Emami Ltd on Friday reported a multi-fold rise in consolidated net profit during the March quarter at Rs 354 crore against Rs 87.7 crore a year ago, boosted by a minimum alternate tax (MAT) credit of Rs 288 crore during the period. Revenue for the quarter under review was Rs 770 crore, a 5 percent rise over the topline of Rs 730 crore in January-March 2021.

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The company said owing to the recognition of the MAT credit entitlement of the earlier years, tax liability was lower and net profit higher by Rs 230.33 crore. "The FMCG industry was affected with muted volumes in the fourth quarter against the backdrop of rising inflation levels, further fueled by geo-political factors, which impacted the overall consumption sentiment across rural and urban markets," Emami said in a release.
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In the March quarter, the Kolkata-headquartered company reported gross margins at 62.4 percent, a contraction of only 30 basis points on account of price hikes and strategic procurement. EBIDTA was at Rs 164 crore, a 1-percent yearly rise.
"Despite the challenging environment that the industry is going through since the last few years, we are happy to have posted a three-year PBT CAGR of 20 percent in FY22, which is one of the highest in the industry since the COVID period. With an overall focus on digital business, our investments in new-age startups are a step towards being present in the ever expanding FMCG sector," Emami CMD Harsha V Agarwal said.

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