Emami (531162) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue grew 3% YoY to INR 891 crore, with domestic business up 2.6% and international up 6%.

• Gross margin improved by 60 bps to 70.7%, and EBITDA grew 7% to INR 250 crore, with margin expansion of 110 bps.

• Profit before tax rose 13% to INR 220 crore, and profit after tax increased 19% to INR 213 crore.

• Board declared an interim dividend of 400% (INR 4 per share) for FY24/FY25.

• 11 new products launched and stake in Helios Lifestyle (The Man Company) increased to 98.3%.

Financial highlights

• Q2 EBITDA grew 7% YoY to INR 250 crore; margin up 110 bps to 28.1%.

• Q2 PBT rose 13% YoY to INR 220 crore; PAT up 19% to INR 213 crore.

• H1 EBITDA at INR 467 crore (+10% YoY); H1 PBT up 15% to INR 399 crore; H1 PAT up 16% to INR 365 crore.

• Domestic net sales grew 2.6% in value and 1.7% in volume for Q2FY25; international net sales rose 6%.

• Other income increased due to higher interest and mutual fund gains on surplus funds.

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.

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