Consumer goods company Emami will be reporting its second-quarter results on Tuesday and analysts' expect muted earnings this time around.
Here are the key expectations:
For Emami, muted quarter is expected. Emami trades at 24 times FY20 earnings, so muted quarter expected on a high base.
Revenue growth of just about 1-1.5 percent expected by the street anywhere around Rs 635-640 crore is on the cards. EBITDA is likely to decline by about 7-7.5 percent, the number that the street is working with is close to around Rs 190 crore mark.
Emami enjoys the highest gross margins in the industry, spends the maximum amount of its revenue on advertising and has the highest EBITDA margins out there. A correction of about 270 basis points (bps) is on the cards. On the back of that, 21 percent decline in the net profit is what the street is working with.
Domestic volume growth is seen to decline anywhere between 3 percent and 5 percent.
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