Emami Q1 net profit down 34.6% at Rs 56.65 cr

New Delhi, FMCG firm Emami Ltd today reported 34.59 per cent decline in its consolidated net profit to Rs 56.65 crore for the first quarter ended June 30, 2016-17, on account of amortization of Kesh King intangibles. 

The Kolkata-based company had reported net profit of Rs 86.61 crore in the April-June quarter of the last fiscal, Emami said in a BSE filing.

Its consolidated net sales during the quarter under review were up 19.88 per cent to Rs 643.37 crore as against Rs 536.65 crore in the year-ago period.

"Profit after tax was impacted by Rs 60 crore mainly because of amortization of Kesh King intangibles. However, cash profits at Rs 128 crore grew by 18 per cent during the quarter," Emami said.

Emami had acquired Kesh King and allied brands in June last year for Rs 1,684 crore, which was funded through a mix of internal accruals and debt.

Emami's overall domestic business delivered a strong topline growth of 21 per cent.

During the quarter, its international business grew by 14 per cent despite economic challenges in overseas markets led by robust growth in Bangladesh and GCC.

Emami Director Harsha V Agarwal said: "Robust business plan and efficient cost management have helped us to meet the challenging environment to achieve a good topline growth with healthy margins. Most of our power brands including new launches like HE Deodorants, Navratna i-Cool talc, Navratna Almond Cool Oil, Emami 7 Oils in One and Fair and Handsome Instant Fairness Facewash have performed well."

Emami stock was trading 1.74 per cent up at Rs 1,159.65 on BSE.