Why Did Emami's Q4 Profit Plummet by 41.9%?
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Synopsis
Emami Limited's latest financial report reveals a dramatic 41.9% drop in Q4 profit. While revenue has declined, the company shows resilience with year-on-year growth in net profit. Discover the factors behind these shifts and what lies ahead for this FMCG giant.
Key Takeaways
- 41.9% decline in Q4 net profit.
- 8.3% drop in revenue during the same period.
- Year-on-year net profit increased by 8.9%.
- Consolidated revenue rose 8.1% YoY.
- Special dividend of Rs 2 per share approved.
Mumbai, May 16 (NationPress) Emami Limited, a leading player in the FMCG sector, disclosed a staggering 41.9% drop in its net profit, amounting to Rs 162.17 crore on a sequential basis for the January-March quarter (Q4) of FY25. This is a decline from Rs 278.98 crore in the preceding quarter (Q3).
During the same timeframe, the company's revenue experienced an 8.3% decrease, falling to Rs 963.05 crore from Rs 1,049.48 crore in Q3 FY25.
Additionally, total expenses surged by roughly 4.62%, reaching Rs 743.61 crore in Q4, compared to Rs 710.79 crore in the previous quarter.
Conversely, Emami achieved an impressive 8.9% year-on-year (YoY) growth in consolidated net profit, which stood at Rs 162.17 crore in Q4, up from Rs 148.90 crore in the same quarter of the prior fiscal year.
The company's consolidated revenue also saw a 8.1% YoY increase, amounting to Rs 963.05 crore in the last quarter of FY25.
In total, Emami's revenue for the entire FY25 reached Rs 3,809.19 crore, reflecting a 6.5% rise compared to the previous fiscal year.
For the full financial year 2024-25, the net profit increased by 11.5% to Rs 806.46 crore.
Emami's global operations saw a 6% increase in Q4, with notable performance in regions like SAARC, Southeast Asia, the CIS, and Africa.
Modern trade, e-commerce, and institutional sales significantly enhanced revenue, contributing 27.6% to domestic income.
These channels experienced a 13% YoY growth, surpassing the overall domestic business growth.
Harsha V Agarwal, Vice-Chairman and Managing Director, stated that the domestic business grew by 11% in Q4, attributed to a 7% increase in volume.
He also mentioned that input costs remained manageable, and Emami aims to strengthen its core brands while introducing new premium products.
Mohan Goenka, Vice-Chairman and Whole-Time Director, noted that the company launched over 25 new products in the year and anticipates robust growth in FY26, particularly in international and strategic business segments.
The board has approved a special dividend of Rs 2 per share, making the total dividend payout for FY25 Rs 10 per share, or 54% of the company's profit after tax.
Point of View
It is essential to recognize the complexities within Emami's latest report. While the sequential profit decline raises concerns, the year-on-year growth indicates resilience and potential for recovery. This dual perspective fosters a balanced understanding of the company's operational dynamics.
NationPress
08/06/2025
Frequently Asked Questions
What caused Emami's profit decline in Q4?
The decline can be attributed to reduced revenue and increased expenses during the quarter.
How did Emami perform compared to the previous financial year?
Emami reported an 8.9% YoY increase in net profit, showcasing year-on-year growth even amid recent challenges.
