Emami Ltd

Emami posted a set of exuberant numbers for Q4FY13 and a 1:2 bonus – one equity share for every two held made the year all the more good. The company has posted an encouraging set of numbers for Q4FY13, following up on its performance of Q3. Its net profit for the quarter was up 30% (YoY) at Rs.94 crore on a 13% rise in net revenue at Rs.451 crore. The company which sells popular brands like Boroplus, Navranta, Zandu and Fair & Handsome has ended the year on a very good note too. For FY13, net profit came in at Rs.315 crore, up 22% on a 17% surge in net revenue at Rs.1699 crore. The bonus was further sweetened with a generous dividend of 800% or Rs.8 per share (face value Re.1/share).

Domestic revenue for Q4 rose 17.4%, driven mainly by rural India but exports fell 12%. There was an overall 13% growth in volumes. In terms of breakup of brand performance, YoY, Canteen Sales Department grew 68%, Zandu OTC grew 41%, Fair * Handsome rose 15%, Navratna rose 26%, balms grew 18% and the only brand registering fall was Boro Plus – it fell 9%. Looking ahead, the outlook is good as its major raw material – mentha oil, which makes up for 25% of its raw material costs, prices have come down, which in turn is expected to help its margins. It incurred Rs.715 crore on raw materials for FY13. Currently the price is around Rs.1200 /kg  and the earlier contracts of Emami were at Rs.1400 thus if low prices remain, we could see improvement in margins.