Emami Q2 net up 17 pc at Rs 59 cr

FMCG firm Emami Ltd today said its net profit rose by 16.9 per cent to Rs 59.20 crore for the second quarter ended September 30, on the back of robust sales of various brands, including Boroplus and Zandu.

The company had posted a net profit of Rs 50.64 crore during the corresponding period of previous fiscal, Emami said in a statement.

Net sales of the company rose to Rs 360.66 crore for the second quarter, compared to Rs 305.86 crore during the same period of 2011-12 fiscal.

Commenting on the results Emami CEO (Finance, Strategy & Business Development) Naresh H Bhansali said: "Emami registered yet another quarter with substantial growth from its power brands like Boroplus, Fair & Handsome, Navratna and Zandu".

The company's gross margins improved despite steep inflation in some of the key ingredients due to judicial price hikes and effective cost control measures, he added.

The Kolkata-headquartered firm said its domestic business grew by 21.8 per cent to Rs 299 crore during the second quarter as compared to same period of previous fiscal.

During the period under review, the company said its international business grew by 2.8 per cent to Rs 46 crore as against same period of 2011-12 fiscal.

"Growth in the international business was muted because of discontinuance of low margin products and also for reduction in inventory at distributors, retailers level," the company said.

Shares of Emami today closed at Rs 573.80 apiece on the BSE, down 0.02 per cent from their previous close.

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