Emami Q1 net up 30.2 per cent at Rs 60.67 crore

KOLKATA: Emami Ltd on Wednesday reported 30.2% jump in net profit at Rs 60.67 crore for the first quarter ending June 30, 2013, on back of 13.2% growth in turnover at Rs 383.65 crore, jump in exports and easing of input price pressure.

The company said its domestic business grew at a lower rate of 12% during the quarter due to early onset of monsoon which impacted the growth of summer brands. However, the international business grew at 25%.

Emami's main growth drivers is the modern trade which grew by 50% during the quarter, followed by the direct rural sales of the company which grew by 19% and contributes around 26% of the total revenue.

Emami director Mohan Goenka said the company's performance was driven by the power brands which triggered the growth rate despite of an early monsoon. Around 70% of Emami's turnover is derived from the power brands such as BoroPlus Antiseptic Cream, Navratna, Zandu Balm, Mentho Plus Balm and Fair & Handsome.

""Consumer sentiment and demand for our products continued to be good and robust both in modern and general trade. Easing of the input price pressure, especially for the agro-based materials, led to a positive impact and margin expansion during the quarter,"" Goenka said.

Emami during the quarter relaunched the Fair & Handsome brand with a new packaging, improved formulation and aggressive marketing campaign. The company also gained share in Navratna Oil and Navranta Cool Talc.