Emami Limited

Percy Panthaki

IIFL SECURITIES LIMITED

Mohan Goenka

WHOLE TIME DIRECTOR &

Vivek Dhir

CHIEF EXECUTIVE OFFICER,

Gulraj Bhatia

PRESIDENT HEALTHCARE– EMAMI LIMITED

Manish Gupta

PRESIDENT SALES – EMAMI LIMITED

Rajesh Sharma

PRESIDENT FINANCE & INVESTOR RELATIONS

865 Crore

ond quarter and first half ending 30th September 2023. In Q2, our consolidated revenues soared to 865 Crores demonstrating 6% growth. Our domestic business exhibited fairly impressive resilience with a 4% g

6%

lf ending 30th September 2023. In Q2, our consolidated revenues soared to 865 Crores demonstrating 6% growth. Our domestic business exhibited fairly impressive resilience with a 4% growth in net sales

4%

rores demonstrating 6% growth. Our domestic business exhibited fairly impressive resilience with a 4% growth in net sales and a nearly 2% increase in volumes. Notably urban centric channels like moder

2%

omestic business exhibited fairly impressive resilience with a 4% growth in net sales and a nearly 2% increase in volumes. Notably urban centric channels like modern trade and e-commerce witnessed ro

12%

t dynamics. On a brand level, Navratna and Dermi Cool range performed well and recorded growth of 12% in Q2. While healthcare range grew by 4% and pain management by 1%. Boroplus male grooming and Kes

1%

ed well and recorded growth of 12% in Q2. While healthcare range grew by 4% and pain management by 1%. Boroplus male grooming and Kesh King range declined in single digits on account of lower consume

63%

tments in subsidiaries Helios and Brillare Sciences outperformed expectations witnessing a stellar 63% growth. Internationally, we continued our upward trajectory growing by an impressive 16% in consta

16%

a stellar 63% growth. Internationally, we continued our upward trajectory growing by an impressive 16% in constant currency and 12% in INR terms. Despite challenges in certain markets due to currency

350 basis point

wer input costs and judicious price hikes, we achieved a significant expansion of gross margins by 350 basis points reaching 70.1%. Our EBITDA registered robust growth climbing by 20% to 234 Crores with margin ex

70.1%

us price hikes, we achieved a significant expansion of gross margins by 350 basis points reaching 70.1%. Our EBITDA registered robust growth climbing by 20% to 234 Crores with margin expanding to 27%, a

20%

gross margins by 350 basis points reaching 70.1%. Our EBITDA registered robust growth climbing by 20% to 234 Crores with margin expanding to 27%, a rise of 300 basis points. For the first half of the

234 Crore

margins by 350 basis points reaching 70.1%. Our EBITDA registered robust growth climbing by 20% to 234 Crores with margin expanding to 27%, a rise of 300 basis points. For the first half of the financial ye

“On the overall company for the India business, if you could tell e-commerce and modern trade, what is the growth and do you expect acceleration given festival demand will be in Q3, would you expect that?”

“So we expect to have similar kinds of growth coming from both the channels, both from modern trade and e-com.”

“At the same time with our project Khoj reaching out to almost 60,000 villages.”

“So when do we see a double-digit growth and the part two to this question is that do you think the second half also we will be seeing a very strong double-digit growth in the international business?”

“Shirish CIS Russia this is one bad quarter which happened for us due to some uncontrollable issues but when you look at the CAGR over the quarters and quarters, it is performing very well for us that market and we expect it to bounce back in Q3 and Q4 again to a decent growth rates due to the efforts which we had made in the marketplace over the years.”

“So we see a very bright future in this market going forward as well.”

“I mean the base is now going to be normalized in second half also so can we expect a double-digit growth?”

“M ay not be strong double-digit growth, but definitely high single digit growth is what we are seeing and we do see the market being on an upward trend and the general business will be on upper trend in the coming quarters.”

“Okay my last question on the sales front, I think M ohan ji you alluded saying that project Khoj, the project is now done.”

“So I think project Khoj has prepared the foundation and laid the very solid foundation for reach to these markets.”

Mohan Goenka

13

S hirish Pardeshi

7

Moderator

6

Abneesh Roy

4

Nitin

4

Percy Panthaki

2

Manish Gupta

2

Gulraj Bhatia

1

Prakash Kapadia

1

Rajesh S harma

1

Mohan Goenka

Emami Limited November 06, 2023 Ladies and gentlemen, good day and welcome to Q2 FY2024 Earnings Conference Call of Emami Limited hosted by IIFL Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to M r. Percy Panthaki from IIFL Securities Limited. Thank you and over to you! Hi good evening everyone. Thanks for joining us on the Emami results con call. I have with me M r. M ohan Goenka – Whole Time Director and Vice Chairman; M r. Vivek Dhir – CEO, International Business; M r. Gulraj Bhatia, President, Healthcare, M r. M anish Gupta – President Sales and M r. Rajesh Sharma – President Finance and IR. I will hand over the call M r. M ohan Goenka who

Gulraj Bhatia

Emami Limited November 06, 2023 positive indicators that bolsters our confident in the recovery of rural markets. Our unwavering focus remains on driving our long-term strategic goals and enhancing our capabilities. We are determined to continue investing in our brands ensuring superior value for our consumers. With these efforts and the resilience that is a hallmark of Emami's journey, we are confident in our ability to deliver consistent, responsible and profitable growth in the medium to long term. With this overview, I invite Q&A. Thank you. We will now begin the question-and-answer session. We have the first question from the line of Abneesh Roy from Nuvama Institutional Equities. Please go ahead. Thanks and congrats on the margins. M y first question is on the D2C Zanducare business. So essentially I see a lot of new products being launched. So my question is out of the Zandu portfolio what percentage of the products which are sold on Zandu D2C website are also available on third

Abneesh Roy

On the overall company for the India business, if you could tell e-commerce and modern trade, what is the growth and do you expect acceleration given festival demand will be in Q3, would you expect that?

Mohan Goenka

So the growth has been in the range of about 17 to 18% in modern trade and for e- commerce it is about 50% growth in this quarter.

Abneesh Roy

So we expect to have similar kinds of growth coming from both the channels, both from modern trade and e-com. In fact, our e-com has now reached to almost 13% of our total business and modern trade is at 11%. So put together, we have almost reached to 24% both M T and e-com. One last follow up I remember at the end of FY2023 now you had said e-commerce plus modern day is 20% of business. So this year you want to do more focus on profitability rather than sales growth. I see sales growth being strong could you address on profitability, is it meeting your initial… Emami Limited November 06, 2023

Mohan Goenka

Yes Abneesh so that is part of our overall margin expansion plan because now both the channels put together is around 25% of our total business and margins are slightly lower compared to our GT business. Definitely we have improved our margins in both the channels. There is further scope of improving margins in e-com in modern trade. It will come gradual but yes, there are levers of margin expansions in these two channels.