EMAMI LTD Announces Quarterly Results (4QFY20); Net Profit Down 54.9%

Tue, 30 Jun

EMAMI LTD has announced its results for the quarter ended March 2020. Here is a detailed performance review of the same:

EMAMI LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-19*	3 Dec-19*	3 Mar-20*	QoQ Change	YoY Change
Net Sales	Rs m	6,396	8,126	5,327	-34.5%	-16.7%
Other income	Rs m	173	156	145	-7.0%	-16.0%
Turnover	Rs m	6,569	8,282	5,472	-33.9%	-16.7%
Expenses	Rs m	5,500	5,486	4,342	-20.9%	-21.1%
Gross profit	Rs m	890	2,608	911	-65.1%	2.4%
Depreciation	Rs m	160	856	852	-0.4%	433.8%
Interest	Rs m	62	49	24	-51.1%	-61.2%
Profit before tax	Rs m	841	1,859	180	-90.3%	-78.6%
Tax	Rs m	280	398	-74	-118.5%	-126.3%
Profit after tax	Rs m	561	1,460	253	-82.7%	-54.9%
Gross profit margin	%	13.9	32.1	17.1
Effective tax rate	%	33.3	21.4	-41.1
Net profit margin	%	8.5	17.6	4.6

Year-on-Year Performance:

• The company's operating income during the quarter fell 16.7% on a year-on-year (YoY) basis. The expenses were down by 21.1% YoY during the same period.
• The company's operating profit increased by 2.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 17.1% in 4QFY20 as against 13.9% in 4QFY19.
• Depreciation charges increased by 433.8% and finance costs declined by 61.2% YoY, respectively.
• Other income declined by 16.0% YoY during the quarter.
• Net profit for the quarter declined by 54.9% YoY. Net profit margins during the quarter declined from 8.5% in 4QFY19 to 4.6% in 4QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 34.5% on a quarter-on-quarter (QoQ) basis. The expenses were down by 20.9% QoQ during the same period.
• The company's operating profit declined by 65.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 17.1% in 4QFY20 as against 32.1% in 3QFY19.
• Net profit for the quarter declined by 82.7% QoQ, while net profit margins declined from 17.6% in 3QFY19 to 4.6% in 4QFY20.

To see how EMAMI LTD has performed over the last eight quarters,please visit here.

DISCOVER: How to Potentially Multiply Your Returns by Upto 5x...

EMAMI LTD Share Price Performance

Over the last one year,EMAMI LTD share price has moved down from Rs 298.7 to Rs 225.7, registering a Loss of Rs 73.0 or around 24.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,285.1 (up 0.4%). Over the last one year it has moved down from 11,361.9 to 11,285.1, a gain of 77 points (down 0.7%).

Overall, the S&P BSE SENSEX is down 11.3% over the year.

Current Valuations

At the current price of Rs 225.7, the price to earnings (P/E) ratio of EMAMI LTD stands at 16.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.5 times.