Management expects demand scenario to stabilize in next 2-3 quarters driven by government spends in rural infrastructure and better GDP growth.
Emami has reported a 4.8 percent jump in its third-quarter (Q3FY20) consolidated net profit at Rs 144.4 crore, including a one-time loss of Rs 3.3 crore. The company reported a profit of Rs 137.8 crore in a year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) of the company was flat at Rs 264 crore, while EBITDA margin unchanged at 32.5 percent, year-on-year (YoY).
Here are the highlights of Emami's earnings call, compiled by Narnolia Financial Advisors:
The company’s winter portfolio was impacted due to delayed winters and unfavourable seasonality leading to a decline of 13 percent in Q3FY20.
The company is taking corrective measures in the male grooming range which will yield results from Q1FY21
Management expects demand scenario to stabilise in the next two to three quarters driven by government spends in rural infrastructure and better gross domestic product (GDP) growth.
Promoter pledge will come down to ~20 percent from 70 percent post-execution of Emami cement deal and then will further reduce to nil by March 2021.
The Management expects 15 percent YoY growth in the international business in coming quarters and expects gross margin to remain in the existing range led by benign input prices in coming quarters.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
