Amortisation of intangibles of a recent acquisition, Kesh King, saw FMCG major, Emami Ltd, report a 30 per cent dip in standalone net profit to Rs 130 crore for the quarter ending December 31, 2015.

The Kolkata-based company had reported a standalone net profit of Rs 184 crore in the corresponding period last fiscal.

Intangibles amortised to the tune of Rs 60.59 crore during the third quarter of the fiscal primarily include trademarks and brands. Emami had acquired the Kesh King and allied brands in June last year for Rs 1,684 crore; funded through a mix of internal accruals and debt.

Jump in revenues

Subdued winters and the Chennai floods notwithstanding, Emami saw a 13 per cent jump in (standalone) total income for the period at Rs 732 crore; as against Rs 648 crore of the same period last fiscal.

The winter portfolio of the company accounts for 40 per cent of the domestic sales during the quarter.

“Sales were impacted due to delayed winters. Further, lower rural wage growth, muted increase in minimum support prices and an overall sluggish consumer sentiment kept rural consumption demand in check. This apart, Chennai floods too led to adverse impact on sales,” NH Bhansali, CEO – Finance, Strategy and Business Development, Emami Ltd, said.

Consolidated results

On a consolidated basis too, the company’s net profit dipped on a year-on-year basis. The net profit stood at Rs 134 crore, down by 27 per cent; against the Rs 184 crore it reported in the year-ago period.

Total income from operations on a consolidated basis increased by over 14 per cent to Rs 789 crore (Rs 692 crore) for the third quarter of this fiscal.

Shares of Emami closed at Rs 1,011.80, up by 1.79 per cent at the on BSE, on Thursday.

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