The FMCG company's profit before tax stood at Rs 252.74 crore in Q3 December 2020, rising 37% from Rs 184.26 crore in Q3 December 2019. Current tax expense rose 28% to Rs 45.3 crore in Q3 December 2020 over Q3 December 2019.
Emami said it continued its growth momentum in the third quarter with an all-round record performance across brands, channels and geographies. The company posted a strong growth in its domestic business led by 13% growth in volumes. The domestic business grew by 16% and international business grew by 26% during the quarter.
The quarter witnessed an all-round growth across major brands; Healthcare Range grew by 38%, BoroPlus grew by 21%, Kesh King grew by 16%, Pain Management Range grew by 12% and 7 Oils in one grew by 32%. Male Grooming range recovered and posted positive growth led by the relaunch of Fair and Handsome Range.
While rural markets continued to perform better, growth in urban markets also picked up. All the channels continued to perform well and posted convincing growth with e-commerce channel growing by 3.5x during the quarter. Modern Trade also registered a strong growth of 51% during the quarter.
The company said its margins increased due to stringent cost control measures and benign raw material prices. The company recorded its highest ever EBITDA margin in Q3 FY21. EBITDA margin improved by 390 basis points to 36.4% in Q3 December 2020 from 29% in Q3 December 2019. Emami's EBITDA surged by 29% year on year in Q3 December 2020.
Commenting on company's performance, Mohan Goenka, director of Emami said, “We are happy to have continued our growth momentum aided by aggressive growth strategies, dedicated team efforts, quality products and stringent cost control measures. Some of our brands in the healthcare & hygiene range, winter portfolio and 7 oils have done exceedingly well during the quarter, signifying positive consumer sentiment. Rural offtakes continue to march ahead of Urban, which too have started picking up. We are optimistic to close the year not only on a positive note but expect to post a high single digit overall growth.”
Meanwhile, the company has declared an interim dividend of Rs 4 per share with a record date of 5 February 2021.
Shares of Emami were trading 1.06% lower at Rs 479.80. Emami is an FMCG company engaged in manufacturing & marketing of personal care & healthcare products. It is the flagship company of the diversified Emami Group.
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