Emami (531162) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue grew 3% YoY to INR 891 crore; H1 revenue up 6.3% to INR 1,797 crore, with both domestic and international sales contributing.

• Profit after tax increased 19% in Q2FY25 and 16% in H1FY25, driven by margin expansion and cost efficiencies.

• Board declared an interim dividend of 400% (INR 4 per share) for FY24, record date set for November 18, 2024.

• Gross, EBITDA, and PAT margins expanded significantly, reflecting operational improvements despite high food inflation and geopolitical challenges.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2024-25 were approved.

Financial highlights

• Q2FY25 revenue from operations: ₹890.6 crore (+3% YoY); PAT: ₹212.7 crore (+19% YoY); H1FY25 revenue: ₹1,796.7 crore (+6.3% YoY); PAT: ₹365.3 crore (+15.5% YoY).

• Gross margin expanded by 60 bps YoY in Q2 to 70.7%; H1 gross margin up 140 bps to 69.2%.

• Q2 EBITDA grew 7% YoY to INR 250 crore; margin up 110 bps; H1 EBITDA at INR 467 crore (+10% YoY).

• Other income increased due to higher interest and mutual fund gains on surplus funds, growing 94% in Q2FY25.

• A&P spends reduced by 150 bps in Q2FY25, aiding margin expansion.

Outlook and guidance

• Management targets high single-digit revenue growth and double-digit EBITDA growth for FY25.

• Optimism for H2 driven by relaunches (Fair and Handsome, Kesh King), strong winter forecast, and recovery in Bangladesh.

• Continued focus on digital-first launches, enhanced marketing, and consumer engagement to drive growth.

• Expecting 7-8% growth in Q3, with BoroPlus range aiming for double-digit growth if winter is strong.

• Management expects continued tax benefits for the Assam facility through FY2025-26, supporting MAT credit utilization.