Emami Ltd’s net profit down in Q1, augments production capacity

Kolkata, Aug 3 (IANS) Fast moving consumer goods major Emami Ltd. on Wednesday reported a 34.59 per cent dip in its net profit to Rs 56.65 crore in the this fiscal's first quarter ended June 30 compared with Rs 86.61 crore in the corresponding period last fiscal.

The company is setting up a third manufacturing unit at Guwahati in Assam under a mega project. "The total planned outlay for the project is Rs 300 crore, out of which the company has already invested Rs 195 crore. The unit is expected to commence operations by FY17," said a company statement.

The net profit was impacted due to amortisation of Kesh King intangibles.

"PAT (profit after tax), however, was impacted by Rs 60 crore, mainly because of amortisation of Kesh King intangibles. However, cash profits at Rs 128 crore grew by 18 per cent during the quarter," it said.

Overall, the domestic business delivered a strong topline growth of 21 per cent and CSD business grew by 12 per cent.

While the turnover at Rs 644 crore in the first quarter grew by 20 per cent, EBIDTA grew 49 per cent to Rs 147 crore over the corresponding quarter in previous year.

International business grew by 14 per cent during the quarter despite economic challenges in the overseas markets led by robust growth in Bangladesh and Gulf Cooperation Council.