homebusiness NewsExpect good growth from base correction and acquisitions in FY24: Emami CFO NH Bhansali
Expect good growth from base correction and acquisitions in FY24: Emami CFO NH Bhansali
Share price of Emami Ltd closed 4.37 percent higher at Rs 400.30 apiece in Friday's trade, a day after company reported its March quarter earnings.
Emami Chief Financial Officer (CFO) Naresh Bhansali expects good growth from base correction and acquisitions in financial year (FY) 2023-2024. Sales were higher due to COVID-19 and so the base correction has already happened, the top official told CNBC-TV18 on Friday.
"The growth in the fourth quarter ended March 31, 2023 (Q4FY23) came in at 9 percent and the base correction for the immunity products has happened in the past in the last quarter and also in the previous quarters because of COVID-19, there has been a higher sales, so the base correction has already happened," Bhansali noted.
On top of it, the CFO expects normalised growth from these products and also the summer and winter are expected to be normal for the current financial year. "So, we expect a good growth to come in FY24. And coupled with growth from acquisitions kind of Dermi Cool, and also our subsidiaries where we have already invested, they are also firing a good growth," he said.
As per Bhansali, the international business, which has delivered 19 percent growth in this quarter is expected to deliver the same kind of growth in FY24 as well.
He further noted that the company expects a good growth from the "Kesh King", as in the past year, the oil sector had been muted as a category but now it has started looking up. "We expect single digit volume growth in Kesh King as well, which would be coupled with oil and the shampoos, and there are many other interventions, which we are taking in the Kesh King portfolio itself," he stated.
Emami on Thursday reported a 60 percent year-on-year decline in consolidated profit after tax at Rs 142 crore in the March quarter. Revenue from operations, meanwhile, surged 8.8 percent to Rs 836 crore in the quarter under review.
Emami reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 223.6 crore for the quarter under review, which is up 19.5 percent over the previous year's quarter. Meanwhile, margins during the quarter came in at 26.8 percent versus 24.4 percent.
Emami said the FMCG industry witnessed a mixed demand environment in Q4FY23, as discretionary categories like personal care continued to remain muted on account of reduction of nonessential expenditure by rural consumers.
The company also announced buyback of shares worth up to Rs 186 crore, up to a price of Rs 450.
Share price of Emami closed 4.37 percent higher at Rs 400.30 apiece in Friday's trade, a day after company reported its March quarter earnings.
(Edited by : Pradeep John)
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