On Wednesday the FMCG major reported revenue from operations at Rs 15,319 crore, which was up 2% over Rs 15,027 crore reported in the corresponding quarter of the previous financial year.
The company has declared a total interim dividend of Rs 29 per equity share. The record date has been fixed as November 6, and the dividend will be paid to shareholders on November 21.
The PAT and revenue figures were below ET NOW poll estimates of Rs 2,657 crore and Rs 15,792 crore, respectively.
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The company declared that its board of directors has decided to separate the ice cream business. The boardβs decision to separate the business is in line with the recommendations made by the Independent Committee following a comprehensive review of the business, the company filing said.Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter was Rs 3,647 crores versus Rs 3,694 crores reported in the same quarter last year. EBITDA margin at 23.8% declined by 80 bps versus the same quarter in the last financial year.By way of the interim dividend, the company will incur a payout cost amounting to Rs 6,814 crore.
Segment-wise Revenue
The revenue for its Homecare segment in Q2FY25 stood at Rs 5,737 crore, up from Rs 5,308 crore in the year-ago period. In the segment, growth was broad-based with both fabric wash and household care growing volumes in high-single digits. The liquids portfolio, with a strong double-digit volume growth, continues to outperform.
The revenue for the Beauty & Wellbeing segment in Q2FY25 stood at Rs 3,323 crore, up from Rs 3,274 crore in the year-ago period. The segment grew 7% (1% reported) with mid-single-digit UVG. Haircare continued its growth momentum in high-single digits led by outperformance in Sunsilk, Dove and Tresemme. Skincare and Colour cosmetics delivered a mid-single-digit growth. Premium Skin portfolio maintained its double-digit growth trajectory.
The Personal Care segment reported revenue of Rs 2,412 crore in Q2FY25 versus Rs 2,535 crore in the year-ago period. The segment declined 5% with negative pricing and a low-single-digit volume decline. Skin cleansing declined primarily on account of pricing actions taken during the year. Premium portfolio grew ahead of the segment and within that bodywash continued to strengthen its market leadership with high double-digit growth. Oral Care delivered a competitive high-single-digit growth led by Closeup.
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The Foods & Refreshment segment reported revenue of Rs 3,803 crore in Q2FY25 versus Rs 3,851 crore a year ago. The segment declined 2% with a low-single-digit volume decline. Tea continued to cement its market leadership through value and volume share gains. Green and Functional tea maintained their strong volume growth. However, overall category volumes remained subdued. Coffee grew in double digits. Nutrition drinks continued to gain market shares while consumption remained subdued. Foods grew volumes in low-single digits.
Commenting on the September quarter earnings, CEO and Managing Director Rohit Jawa said the FMCG demand witnessed moderating growth in urban markets while rural continued to recover gradually.
βIn this context, we delivered a competitive and profitable performance. We continued to execute our strategic priorities of transforming our portfolio whilst generating healthy EBITDA margins and cash flows, providing attractive returns to our shareholders. We remain watchful of a gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigour,” the company statement said quoting Jawa.
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