Emami Q3 Results Review - Performance Expected To Improve: Dolat Capital

Dolat Capital Report

Emami Ltd.’s operational performance was below our estimate, but adjutes profit after tax was in line with our estimate due to low tax rate during the quarter.

Domestic business grew 1% (6% three-year compound annual growth rate) while international business reported 7% YoY growth. Core business volume de-growth during the quarter was at 3.9%.

Excluding Dermicool business, modern trade grew by 20% (10.5% contribution) while e-commerce jumped 45% YoY (7.9% contri) in Q3 FY23.

Emami is continuously improving its share in the new trade channels and is expected to accelerate sales.

We have marginally revised our FY23/24/25E earnings per share estimates to Rs 14.6/17.9/18.3 to factor in Q3 performance.

Going ahead, we believe that with rural demand improvement and softening in raw material prices, Emami’s operational performance would improve here on.

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