Future growth expectations in sales/revenue/volumes?

Targeting around 10% sales growth over the next 2-3 years. International business expected to grow at about 15% in the long term. Male Grooming portfolio anticipated to achieve double-digit growth from Q2 onwards. Healthcare segment (10-12% contribution) expected to deliver double-digit growth. Summer and winter portfolios' performance will influence growth; confident of 6-8% growth in Boro Plus and Navratna. Kesh King portfolio projected to grow around 7-8% annually over the next 2-3 years. Innovation-driven growth estimated at about 3% for the full year. Modern trade and e-commerce channels

Future growth expectations in earnings/operating earnings/profits/EPS?

Emami targets a medium to long-term sales growth of 8% to 10%, with certain segments like international business expected to grow around 15% annually. Male Grooming and Healthcare segments are expected to deliver double-digit growth from Q2 FY24 onwards. Brands like Boro Plus and Navratna are projected to grow at 6% to 8%. EBITDA margins are expected to expand by 200 to 250 basis points in FY24, rising from around 25.5% in FY23 to approximately 27.5%. Earnings growth is supported by improved gross margins (up 240 bps in Q1 FY24) due to softening raw material prices and increased A&P in

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Emami LtdQ2 FY23Personal Products

Emami Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹404P/E: 24.1Market Cap: ₹19.4K CrSector: Personal Products

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

N/A

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Targeting around 10% sales growth over the next 2-3 years.
→International business expected to grow at about 15% in the long term.
→Male Grooming portfolio anticipated to achieve double-digit growth from Q2 onwards.
→Healthcare segment (10-12% contribution) expected to deliver double-digit growth.
→Summer and winter portfolios' performance will influence growth; confident of 6-8% growth in Boro Plus and Navratna.
→Kesh King portfolio projected to grow around 7-8% annually over the next 2-3 years.
→Innovation-driven growth estimated at about 3% for the full year.
→Modern trade and e-commerce channels expected to grow by 15-20%, with e-commerce contribution possibly reaching 25-26% in 2-3 years.
→Rural recovery expected to further boost sales.
→Overall confident of 8-10% medium to long-term growth, supported by increased A&P investment and expanded distribution.

Margin guidance

Category 1

→Emami targets a medium to long-term sales growth of 8% to 10%, with certain segments like international business expected to grow around 15% annually.
→Male Grooming and Healthcare segments are expected to deliver double-digit growth from Q2 FY24 onwards.
→Brands like Boro Plus and Navratna are projected to grow at 6% to 8%.
→EBITDA margins are expected to expand by 200 to 250 basis points in FY24, rising from around 25.5% in FY23 to approximately 27.5%.
→Earnings growth is supported by improved gross margins (up 240 bps in Q1 FY24) due to softening raw material prices and increased A&P investments.
→Growth drivers include expanding modern trade and e-commerce channels (expected to reach 25%-26% contribution), rural demand recovery, and innovation-led revenue expected at 3% of total sales.
→The healthcare and international business segments contribute to profitability, with digital and D2C businesses scaling up steadily.

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Fundraise plans

The transcript on page 15 of the provided PDF does not mention any current or future fundraising plans through debt or equity by Emami Limited. Specifically: - There is no discussion about raising new funds via debt or equity. - No comments or guidance were provided by the management regarding such fundraising activities during the Q1 results conference call. - The focus of the discussion was primarily on operational performance, growth strategies, acquisitions, portfolio deseasonalization, and margin expansion. Therefore, based on the available information from the transcript, Emami Limited has not announced any plans for new fundraising through debt or equity as of this call.

Order book

The transcript from Emami Limited's Q1 FY'24 earnings call does not provide any specific information regarding the current or expected order book or pending orders. The focus is primarily on sales growth, brand performance, channel expansion, margin guidance, and strategic initiatives across various portfolios and geographies. Therefore, no data or commentary related to order book or pending orders is available on the pages provided.

Capex plans

Yes

- The transcript does not explicitly mention any major ongoing or planned capital expenditure (capex) or specific strategic investments. - Focus appears to be on expanding and optimizing existing operations, such as Project Khoj (distribution expansion) which is completed. - Investments are primarily directed towards increased A&P (advertising & promotion) to drive growth, rather than heavy capex. - The management mentions being "very careful" with investment decisions and will wait and watch the seasonal performance before increasing A&P further. - There is a completed acquisition of Dermicool and investments in companies like The Man Company (TMC) and Brillare, contributing around 4-5% to revenues. - Optimism expressed about concluding a hospital transaction by month-end, implying a potential strategic move but no direct capex details provided. - Emphasis on digital/e-commerce and modern trade channels growth, but this seems to be more marketing and channel expansion than capex-heavy. No clear mention of large future capital expenditure plans in the transcript.

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