Emami (531162) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenues reached INR 891 crore, up 3% year-over-year; H1 FY25 revenues grew 6.3% to INR 1,797 crore, with both domestic and international sales contributing.

• Profit after tax increased 19% in Q2 FY25 and 16% in H1 FY25, driven by margin expansion and cost efficiencies.

• Profit-led growth achieved despite high food inflation and geopolitical challenges in key international markets.

• Gross, EBITDA, and PAT margins expanded significantly, reflecting operational improvements.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2024-25 were approved, with a 1st interim dividend of ₹4 per share (400%) declared.

Financial highlights

• Q2 revenue from operations: ₹890.6 crore (+3% YoY); PAT: ₹212.7 crore (+19% YoY); H1 revenue: ₹1,796.7 crore (+6.3% YoY); PAT: ₹365.3 crore (+15.5% YoY).

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

• Q2 EBITDA grew 7% to INR 250 crore; margin expanded by 110 bps.

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

• Interim dividend of 400% (INR 4 per share) declared for FY24.

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 ongoing brand investments.

• Continued focus on digital-first launches and brand relaunches to drive growth.

• Enhanced marketing and consumer engagement expected to support future performance.

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