Emami (531162) Q3 24/25 earnings summary

Executive summary

• Core domestic business grew 8.6%-9% in Q3 FY25 with 6% volume growth, marking the second consecutive quarter of high single-digit growth.

• Consolidated Q3 revenue reached INR 1,049 crores (Rs 1,04,948 lacs), up 5% year-over-year, despite declines in male grooming and Kesh King segments.

• BoroPlus and healthcare segments delivered strong growth, with BoroPlus up 20% and healthcare up 13%, led by Zandu Care.

• Rebranding of Fair and Handsome to Smart and Handsome, with new product launches and a new brand ambassador, aims to broaden the male grooming portfolio.

• Board declared a second interim dividend of 400% (INR 4/share), bringing the total FY25 payout to 800% (INR 8/share).

Financial highlights

• Gross margin expanded by 150 bps to 70.3% in Q3; EBITDA grew 8% to INR 339 crores, with margin up 70 bps to 32.3%.

• Profit after tax increased 8% to INR 279 crores in Q3; EPS for Q3 FY25 was Rs 6.39.

• For nine months ended Dec 2024, gross margin rose 140 bps to 69.6%, EBITDA up 9% to INR 806 crores, and PAT up 12% to INR 644 crores.

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

• Q3FY25 gross profit: ₹738 crore; EBITDA: ₹339 crore; PBT: ₹301 crore.

Outlook and guidance

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

• Anticipates robust growth ahead, supported by new launches, rebranding, and improving macroeconomic indicators.

• 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.