Consumer goods company Emami, best known for its Kesh King hair oil and Zandu Balm, reported a decline in its Q4 net profit on Thursday on the back of writing off MAT credit entitlement of Rs 14 crore.
Net profit declined to Rs 60.23 crore for the quarter ending March 31, from Rs 83.32 crore a year ago.
The total revenue from operations of the Kolkata-based company stood at Rs 616.98 crore during the quarter. It was Rs 575.86 crore in the corresponding quarter of the previous fiscal.
“While Q4 witnessed a good growth led by Navratna, Pain Management and new launches, we expect the momentum to continue in FY19. With GST stabilisation, normal monsoon expectation coupled with higher government spending, FMCG is poised for a good growth,” said Harsha V. Agarwal, director, Emami Limited.
Other FMCG companies such as Marico and Dabur, who posted results, are more bullish about rural demand as compared to urban.
“The consumption environment for the industry has overall been positive with rural business chartering the growth path. We have increased our direct reach to 8.5 lakh outlets, which will help reduce our dependency on wholesale channel,” said Mohan Goenka, director, Emami Limited.
The company was founded in 1974. It is popularly known for products such as Zandu Balm and Kesh King, which accounted for more than 30% of its domestic revenue.
Domestic business grew by 10%, and the international arm of the company grew at 37% in Q4 FY18, led by SAARC and MENAP regions, said the statement.
Emami’s shares were trading at Rs 1,085.50 at close on the BSE, down by more than 2%. The company also approved a bonus share in the ratio 1:1.
