New Delhi: FMCG firm Emami Ltd on Thursday reported a 26.98 per cent decline in consolidated net profit at Rs 134.12 crore for the third quarter ended December 31, on account of amortization of Kesh King intangibles.
The Kolkata-based company had reported a net profit of Rs 183.70 crore in the October-December period year-ago. However, net sales of the company during the period under review was up 13.90 per cent to Rs 788.53 crore as against Rs 692.26 crore of the same period last fiscal, Emami said in a regulatory filing.
"Sales were impacted due to delayed winters as Emami's winter portfolio contributes nearly 40 per cent of the domestic sales during the quarter. Further, lower rural wage growth, muted increase in minimum support prices and an overall sluggish consumer sentiment kept rural consumption demand in check," the company said.
It further added its profit after tax "was lesser compared with the corresponding period of previous year because of amortization of Kesh King intangibles by Rs 62 crore and Rs 137 crore for the third quarter and nine months respectively."
Emami had acquired Kesh King and allied brands in June for Rs 1,684 crore, which was funded through a mix of internal accruals and debt.
Shares of Emami closed 1.79 per cent up, at Rs 1,011.80 on BSE.