Emami Ltd posted a set of good numbers for Q3FY13 wherein consolidated net sales rose 21% (YoY) at Rs.549 crore and despite a 23% surge in operating costs, a small forex loss of Rs.1 crore and a 26% rise in tax outgo, it ended the quarter with a net profit at Rs.115 crore, up 22%.  EBITDA was up 38% at Rs.162 crore and EBITDA margin was up 380 bps at 29.6%. The company hopes to maintain margins around the same levels through the rest of the fiscal.

The good numbers were on the back of very good growth in topline helped by sales in its brands, mainly Zandu and Boroplus. The company is doing well in the FMCG sector because it has created a niche for itself by entering the sector of specalised oils, like Navratna, which has a strong brand presence. Its other brand, Boroplus has also got instant brand recognition and the logical extension in both these brands has helped boost sales. Its fairness cream for men, ‘Fair and Handsome’ is the market leader in the category and has been able to beat the might of MNC FMCGs like Nivea and Garnier. ITC has also come with a similar cream but Emami’s brand seems to be unaffected by this entry due to its ‘first mover’ advantage. The company is expected to end Fy13 on a higher note as its net profit for 9MFY13 stood at Rs.221 crore as against Rs.259 crore for FY12. Surely, it will be able to surpass the FY12 numbers in current fiscal.