Emami shares surge over 18% to hit 52-week high as company post strong Q4 results

Emami said that its consolidated net sales grew 8% to ₹881 crore in the March quarter compared with the year-ago period. Revenue from operations, meanwhile, rose 7% year-on-year to ₹891 crore.

“Major brands like Boro Plus, Pain Management range, Healthcare range, 7 Oils in One, The Man Company and Brillare performed strongly during the quarter. However, extended winters led Navratna and Dermicool to post low single-digit growth,” the company said in a statement.

The company’s profit after tax (PAT) stood at ₹149 crore in the March quarter, up 3% compared with a year ago.

Operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), grew 6% to ₹211 crore during the quarter. This was despite strong investments behind brands which led to a 39% surge in advertising and promotion (A&P) spends.

Emami’s gross margins stood at 65.8%, up 270 basis points, in Q4 FY24.

For full fiscal FY24, Emami posted revenue of ₹3,578 crore, up 5% compared with FY23. EBITDA jumped 10% to ₹950 crore during the year, with margins expanding 120 bps to 26.5%. The net profit grew 13% in FY24 to ₹724 crore.

After the announcement, Emami shares rallied as much as 18.2% to ₹619 apiece on the NSE, their highest level in almost three years. The stock has gained nearly 52% in the past one year compared with a 21% gain in the benchmark Nifty 50 index during the same period.

Emami’s portfolio includes over 450 diverse products, including power brands like Navratna, Boro Plus, Fair and Handsome, Zandu Balm, Mentho Plus, among others. After a successful takeover of Zandu Pharmaceuticals Works Ltd in 2008, the company acquired the business of ‘Kesh King’ and forayed into the Ayurvedic hair and scalp care segment.

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