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Dolat Capital: Emami Posts In-Line Results; Expects Gradual Recovery

Dolat Capital: Emami Posts In-Line Results; Expects Gradual Recovery

A store keeper arranges beauty and whitening products, including Emami Ltd.’s “Fair and Handsome” at a Big Bazaar outlet in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg)  
A store keeper arranges beauty and whitening products, including Emami Ltd.’s “Fair and Handsome” at a Big Bazaar outlet in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg)  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Emami Ltd.’s Q1 FY21 revenues came in line but Ebitda and Adjusted profit after tax were a beat. Domestic business declined 26%, while international business posted 18% revenue de-growth in Q1.

Supply chain disruption in April due to Covid-19 resulted in sales decline. Secondary sales decline was approximately 15% during the quarter versus 26% primary sales decline.

Distributor inventory days declined from 29-30 days in March to approximately 27 days in June and approximately 19-20 days in July end. This signifies that the secondary sales growth in July was better than primary sales.

Emami reported double digit growth in July, which was a key positive. International business gained momentum in July. Creme-21 is expected to maintain strong growth going ahead.

Click on the attachment to read the full report:

Dolat Capital Emami Q1FY21 Result Update.pdf

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