Emami (531162) Q3 24/25 earnings summary

Executive summary

• Core domestic business grew 8.6% in Q3 FY25 with 6% volume growth, while consolidated Q3 revenue reached INR 1,049 crores, up 5% year-over-year; domestic core net sales rose 9% in Q3.

• Profit after tax increased 8% in Q3 FY25 and 12% in 9MFY25, with margin expansion across gross, EBITDA, and PAT levels.

• BoroPlus and healthcare segments delivered strong double-digit growth, with BoroPlus up 20% and healthcare up 13% in Q3, led by Zandu Care.

• Rebranding of Fair and Handsome to Smart and Handsome aims to broaden the male grooming portfolio, with new campaigns and ambassador.

• Board approved a second interim dividend of INR 4 per share (400%) for FY24; total interim dividends for 9MFY25 reached INR 8 per share (800%).

Financial highlights

• Q3 FY25 consolidated revenue: INR 1,049 crores (+5% YoY); PAT: INR 279 crores (+8% YoY); EBITDA: INR 339 crores (+8% YoY); EPS: INR 6.39.

• 9MFY25 consolidated revenue: INR 2,846 crores (+6% YoY); PAT: INR 641 crores (+11% YoY); EBITDA: INR 806 crores (+9% YoY).

• Gross margin expanded by 150 bps to 70.3% in Q3; EBITDA margin up 70 bps in Q3 and 80 bps in 9MFY25.

• Operating cash flow for nine months estimated at INR 500-550 crores.

• Dividend payout for FY24 totals 800% (INR 8 per share), with a payout of INR 349 crores for 9MFY25.

Outlook and guidance

• Management expects continued double-digit growth in BoroPlus and healthcare in Q4, with positive momentum in core brands.

• Plans to focus on new product development in male grooming and expand digital and ATL/BTL campaigns.

• Weighted average price increase of 1.5%-2% expected in the coming quarter.

• Tax rate projected at 8%-9% for FY25 and around 10% for FY26.

• Assam facility continues to benefit from income tax incentives until FY 2025-26.