Emami, a Kolkata-based, homegrown FMCG giant said that it intends to maintain decent margins this fiscal on the back of stringent cost control and volume-led growth. The company would try to absorb input costs through higher operational efficiency and judicious price increases.
As of now, FMCG companies are facing inflationary pressure on the raw material inputs and some of them have even increased the prices to maintain margins. On the other hand, Emami, enjoys one of the highest margins in India's FMCG companies, generating an attractive corpus for reinvestment.
"Going forward, the company intends to maintain decent margins on the back of stringent cost control and volume-led growth. Increase in raw material costs could be absorbed through higher operational efficiency and judicious price increases," said Emami over the outlook for FY22.
"However, margins increased with 8 percent sales growth due to stringent cost control and benign raw material prices. The company is debt-free despite having invested more than Rs 2,600 crore in acquisitions over 12 years," it added.
In FY 21, Emami, which owns some power brands such as Navratna, Boro Plus, Kesh King, Men's Fairness Cream, had a revenue of Rs 2,881 crore, up 8.51 percent from a year-ago period.
While its EBITDA for the financial year ended on March 31, 2021, was up 27.79 percent to Rs 883 crore. Its EBIDTA margin was at 30.7 percent in FY21 as against 26 percent of FY20.