EMAMI LTD - RESULTS FOR = Q3 FY 2013-14 - NET SALES UP7%; NET PROFIT UP 31% YoY

Emami Limited

Results For Q3 FY 2013-14

(Q E Dec,2013)

Emami Limited has produced very good results for the third quarter ending December, 2013.

Net sales have gone up to Rs.584.67 Cr; up by 43.75% from Q2 FY 14 (Rs.406.74 Cr); and up by  6.57% from Q3 FY 13 (Rs.548.65 Cr)

Total expenses  are well under control at Rs.414.58 Cr; up by 27.45% from Q2 FY 14(Rs.325.30 Cr); and down by -0.92% from Q3 FY 13 (Rs.418.42CR)

Profit from operations stands at Rs.     170.09 Cr ; up by 108.85% from Q2 FY 14 (Rs.81.44 Cr); and up by 30.61% from Q3 FY 13 (Rs.130.23 Cr).

Other income     stands at Rs.12.20 Cr ; down by     -33% from Q2 FY 14 (Rs.18.21 Cr); and up by  22% from Q3 FY 13 (Rs.10.00 Cr).

Finance costs    stands at Rs.1.22 Cr ; down by       -12.23% from Q2 FY 14 (Rs.1.39 Cr); and down by  -21.29% from Q3 FY 13 (Rs.1.55 Cr).

Profit  before tax     stands at Rs.181.07 Cr ; up by 84.28% from Q2 FY 14 (Rs.98.26 Cr); and up by    30.57% from Q3 FY 13 (Rs.138.68 Cr).

Tax expense      stands at Rs.30.39   Cr ; up by 65.97% from Q2 FY 14 (Rs.18.31 Cr); and up by  27.96% from Q3 FY 13 (Rs.23.75 Cr).

Net Profit stands at Rs.150.68 Cr ; up by   88.47% from Q2 FY 14 (Rs.79.95 Cr); and up by       31.11% from Q3 FY 13 (Rs.114.93 Cr).

Face Value of the share is Rs.1.

Paid-up equity  stands at Rs.22.70Cr; compared to Rs.15.13 cr in Q3 FY 13.

Basic EPS on a FV of Rs.1 stands at Rs.6.64; compared to  Rs.3.52 in Q2 FY 14; and Rs.7.6 in Q3 FY 13

Percentage of  PUBLIC holding  stands at 27.26% in the company.

The company recommended an interim dividend of Rs 3 per equity share.

Results Table

EMAMI	Q3FY14	%Dif QoQ	Q2 FY14	%Duf YoY	Q3FY13
Net sales	58467	43.75	40674	6.57	54865
Cost of materials	16439	23.2	13343	4.37	15750
stock-in-trade	2675	-9.96	2971	-42.79	4676
Changes in inventories	1338	-198.45	-1359	222.41	415
Employee benefits	3565	-3.02	3676	13.5	3141
Depreciation	1609	-48.77	3141	-48.06	3098
Other expenses	15832	47.16	10758	7.25	14762
Total expenses	41458	27.45	32530	-0.92	41842
Profit from operations	17009	108.85	8144	30.61	13023
Other income	1220	-33	1821	22	1000
Finance costs	122	-12.23	139	-21.29	155
Profit  before tax	18107	84.28	9826	30.57	13868
Tax expense	3039	65.97	1831	27.96	2375
Net Profit	15068	88.47	7995	31.11	11493
Face Value (in Rs.)	1	0	1	0	1
Paid-up equity	2270	0	2270	50.03	1513
Basic EPS	6.64	88.64	3.52	-12.63	7.6
Per % of PUBLIC holding	27.26	0	27.26	0	27.26

Over the first nine months (April to December 2013) the company repositioned the Boroplus brand, launched a face-wash and moisturising lotion, re-launched the Fair and Handsome brand and roped in Bipasha Basu and Milkha Singh to endorse Boroplus Anti-Pollution face-wash and Zandu Kesari Jivan.

The company says – 

Despite depressed market conditions due to sluggish economy, high inflation and erratic weather, Emami has been able to sustain modest growth.

While demand for the company's products was good, leading to continuous increase in market share in key categories, a delayed and erratic winter affected offtake.

International business has performed well, with aggressive growth in GCC (Gulf Cooperation Council) and SAARC countries. Effective cost management and easing of input prices has helped improve margins and report higher profits.

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