Weak quarter seen for Emami; GST impact could hit financials: Poll

Emami is likely to post a weak quarter and could be among the weakest in the sector, a poll of analysts by CNBC-TV18 has revealed.

Net profit is likely to be down 23 percent at Rs 44 crore against Rs 56.7 crore in the same quarter of last year. The consolidated total income is seen lower by 7 percent at Rs 600 crore against Rs 644.4 crore in the same quarter.

Meanwhile, the operating margin is seen at 22 percent against 23 percent last year.

Destocking due to GSDT, higher share of wholesale segment, weak global performance, higher ad spends during IPL, and competition in Kesh King from Patanjali seen as threats to the performance.

GST Impact: High

Inventory at dealers: 17-20 Days (Higher than Industry)

Revenue share of wholesale: ~50% (Higher than industry)

Destocking at the retailers' end, more because Emami's categories are small niche segments & not everyday use