Emami Limited (NSE: EMAMILTD) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Unidentified Speaker
Mohan Goenka — Vice Chairman and Wholetime Director
Vivek Dhir — CEO-International Business Division
Gul Raj Bhatia — President-Health Care Division
Rajesh Sharma — President-Finance and Investor Relations
Giriraj Bagri — Chief Growth Officer
Manish Gupta — President Sales
Analysts:
Unidentified Participant
Percy Panthaki — Analyst
Abneesh Roy — Analyst
Shirish Pardeshi — Analyst
Harit Kapoor — Analyst
Ajay Thakur — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Imami Limited Q4FY25 earnings conference call. 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 Start then zero on your touchstone phone. Please note that that this conference is being recorded. I now hand the conference over to Mr. Percy Pantaki from IFL Capital. Thank you. And over to you, Mr. Pantaki.
Percy Panthaki — Analyst
Hi, good evening. Welcome everyone. I have with me the management of imami. I have Mr. Mohan Goenka, Whole Time Director and Vice Chairman, Mr. Vivek Dir, CEO International Business. Mr. Gulraj Bhatia, Mr. Manish Gupta, President Sales and Mr. G. Raj Bagri, Chief Growth Officer. And Mr. Rajesh Sharma, President Finance and IR. Without further ado, I’ll hand over the call to the management who will take you through the results and then we’ll have over to you, sir.
Mohan Goenka — Vice Chairman and Wholetime Director
Okay, thank you. Very good afternoon ladies and gentlemen. Thank you for taking this time to join us today for our earning call for the fourth quarter and the financial year ended 31 March 25. Consumption demand trends in quarter four remained similar to the previous quarter. While rural markets continue to perform well. Mass urban demands remain subdued. In this scenario, I am pleased to report that our core domestic business continue to deliver robust growth this quarter also this time growing by double digit at 11% with volume growth of around 7%. This growth was achieved across brands and categories reflecting strong well rounded performance throughout the portfolio.
Navratna and Dermicool range grew by 16%. Boroplus range delivered growth of 27%. Healthcare range grew by 13% and pain management grew by 1%. In the male grooming category, our recent rebranding efforts are showing early success. The newly repositioned Smart and handsome brand posted a 7% growth and Keshking delivered flattish growth this quarter. After absorbing the revenue decline of 12% in our strategic investment portfolio. Our overall domestic business grew by 9% in Q4 with a volume growth of about 5%. We are proactively addressing challenges in the Keshe King and the Man Company. We are sampling Keshe King strategy on solving for both medium term and strategic issues as well as tactical challenges, E Com pricing, SKU Mix and media effectiveness.
We are confident that these steps will drive a turnaround this year. Similarly for the Man Company, we are targeting to ramp up growth this year focused on scaling of marketplace share, Quick Commerce, a 360 brand revamp and performance based Spend Optimization to drive profitability we are very happy to inform that Mr. Zyrus Master has joined as the Chief Operating Officer and Director at the MAN Company. He brings with him over two decades of rich experience across multiple across multiple industries. In his most recent role as Chief Business Officer at Honessa Consumer, Zyrus played a pivotal role in managing brands like Mamaearth, the Derma Company, Equalogica, Dr.
Saitz and Be Blunt. During the quarter we also forayed into the brightening category with the launch of Himami Pure Glow, a skin care offering designed to address evolving consumer needs. The brand has been rolled out in select markets and we have onboarded Rashi Khanna as the face of pure glow. In FY25 we introduced over 25 new products in our domestic business including 11 new launches on our D2C port and Jhandoo Care. Our digital first portfolio on Jhandoo Care continues to scale rapidly, growing over 50% year on year and now contributing over 80% of Jhundo Care sales.
Products launched in the last two years now contribute around 50% to total Jandu Care sales. On the distribution front, our organized channels, modern trade, E COM and institutional sales continue to perform strongly in FY25. These channels together contributed around 28% to our domestic revenue, a 140 basis points improvement year on year, while our overall domestic business grew by 7%. In FY25, the organized channels grew at almost double the pace at 13%. Turning to our international business after a decline in Q3, we returned to growth in Q4 posting a 6% increase despite geopolitical and macroeconomic challenges in Bangladesh, Middle east and some parts of Africa.
This growth was supported by strong performance in the SAAC, Southeast Asia, CIS and Africa regions. Our consolidated revenue for Q4 stood at 963 crores, an increase of 8%. Gross margins expanded by 10 basis points to 65.9% while EBITDA grew by 4% to 219 crores. Profit after tax grew by 14% to 194 crores and profit after tax grew by 9% to 162 crores. For FY25. Consolidated revenue at 3809 crores grew by 6.5%. Gross margins expanded by 100 basis points to 68.6%. EBITDA grew by 8% to 1025 crores and EBITDA margins for the full year improved by 40 basis points to 26 point, while profit before tax grew by 13% to 894 crores.
Profit after tax grew By 11% to 806 crores. I am pleased to share that the board of directors have approved a special interim dividend of 200% translating to rupees 2 per equity share while celebrating 50 years of Evami including the earlier two interim dividends of 400% each that is rupees 4 per share declared in Q2 and Q3. The total dividend payout for FY25 stands at 1000% or rupees 10 per share representing a payout ratio of 49% on adjusted price path. Fully aligned with our dividend policy and committed to maximizing shareholders value. Looking ahead to the next financial year we are optimistic about delivering a strong performance across the board.
Our market shares and household penetration across brands are trending upwards giving us confidence of sustaining growth in FY26. With strategic actions being taken for meal grooming range, Keshe King and the Man Co. We anticipate positive momentum for these brands in FY26. We expect a gradual pickup in consumption supported by easing inflation, recent income tax benefits to individual taxpayers, higher government capex and a more accommodative monetary policy including potential rate cuts. With our international business and strategic investments showing promising signs of rebound we are excited about delivering robust all round growth in FY26. With this I would now like to open the floor for questions.
Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one Touchstone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question comes from the line of Avanish. Roy, please go ahead.
Abneesh Roy
Yeah, thanks and congrats on good numbers. My first question is on Zyrus Master. So here my question is what will be his key KRA from a next two to three years perspective MAN company In the past few quarters your stake has almost fully become 100% and the numbers have been a bit volatile and he has a excellent track record and excellent experience in Honasa, Unilever, Airtel, Nokia etc. So what will be his main target over the next two to three years in man company?
Mohan Goenka
So firstly we are very excited to have him on board. We have been trying to reach out to him for quite some time so this was absolutely part of our strategy to bring someone who understand this business very well and of course he has just joined a couple of weeks back and he’s a master in this. So of course the target is to get back to growth, to take the man company and other startups on the fast track. How can we get to, you know, substantial growth plus at the same time of course the targets are to see that the brands get to profit in some time.
I’m not expecting profits immediately but of course the long term target is to get these brands to profitability, that These are the two goals what he has. Right now
Abneesh Roy
and one follow up here. Man Company was also a G2C startup only. So in terms of now this new leadership and the overall performance has been bit volatile. So is the original team now fully gone? And in terms of anything weak in the business model, is there something weak or is it just the demand scenario which was weak and the transition, was there anything you can call out where there was a change needed in terms of strategy?
Mohan Goenka
So there hasn’t been much changed. Giriraj is on the call. So he’s managing as you know, all the startups. So Giraj, if you can add whatever you want to add.
Giriraj Bagri
Yeah, thanks for the question. A couple of things. First, as Mohanji mentioned, we are very excited to have Zaire on board and his mandate is essentially to be able to build a good team, restore simple leading growth rate this year itself and also a long term path to profitability. As far as the original team is concerned and the volatility of management is concerned, I think that is behind us now. The promoters have stepped away completely from day to day operations including you know, their presence in the office. So they are gone. There is a complete brand revamp which is planned very soon.
So I expect a very significant rebound to happen in the man company in the months to come.
Abneesh Roy
So my second question is on the cooling products. Those have done quite well in Q4. My question is in Q1 the base is high because last year in Q1 you had done really well. What we are picking up in April and May a lot of the other cooling categories have not done well because there was all this sudden rains in North India, thunder shower and temperature became low. So for example AC sales, the cooler sales and even the beverages, all those have cooled off. So from that perspective and high base, how do you see this category in Q1, the tough comparables in that scenario.
Mohan Goenka
So Abnesh, you are absolutely right. This quarter is slightly challenging as far as the summer portfolio is concerned. We saw fantastic growth in Q4 so primaries happened unfortunately southern markets and Some parts of east and west have not done so well. So you are right. We are seeing sporadic rainfalls across India. So. Sorry, sorry. There is some. Can you hear me okay. So. So yeah, you’re right. So summer has been. Is a slight dent. I think. Let us wait for another two, three weeks. If we see some rebound. We have a higher base. So there would be slight challenge on our summer and we will try to see if we can make up with some some of our portfolios this year.
Abneesh Roy
So thanks. I think the audio quality at the end was a bit weak but I got the gist. Thanks a lot. That’s from my side.
Mohan Goenka
Thank you. You can always reach out to Rajesh if you want any further details.
operator
Thank you. Next question comes from the line of Shirish Pardesi with Motilal OSWAL Financial Services Ltd. Please go ahead.
Shirish Pardeshi
Hi Mohanji and team. Thanks for the opportunity and congratulations. I was little bit excited seeing borrow plus range has grown 27%. Did you see any sudden spike? I mean winter was extended but is there anything new which has happened in that segment?
Mohan Goenka
Not really. Suresh these when summer doesn’t do so well. So Boroplus does slightly better and same trends is what we are seeing also in the first quarter. Boroplus is doing though it’s a very, very small base. But April and May Boroplus is shining better than some of our summer items. So it is purely seasonal. Honestly. Okay.
Shirish Pardeshi
The other thing I wanted to check with you. This smart and handsome launch has happened towards the end of quarter or early. Say Jan.
Mohan Goenka
Yeah, we lost it in second week of January.
Shirish Pardeshi
Okay. So by and large we would have now phased out the FH and everything is getting replaced.
Mohan Goenka
Absolutely, Absolutely.
Shirish Pardeshi
But is there any. Is there any return which has happened on financing?
Mohan Goenka
No, no. Nothing at all. Nothing. Not even 1%. Okay.
Shirish Pardeshi
The other question was pure and pure and glow. This is an entry into the skin care. What is the two, three timelines we should be monitoring for next three to four quarter. I mean yes, we are excited to see the new launch which has happened. But if you actually look at the skin care categories, lot of clutterness which is there. So what is it that we are talking different to the consumer?
Mohan Goenka
Every category is cluttered. So of course we have right out in larger categories. That is part of our growth strategy. And brightening is a big market, almost 3,4000 crore market with monopoly of levers. So we are talking certain market. Since that we will actually.
Shirish Pardeshi
I think I lost you. Your voice is not continuous.
Mohan Goenka
Oh is it? Okay. Okay. So I’m saying it’s a large category. We are trying it out in certain markets of south. Of course it’s, it’s based out of nature and science. We have some clinical results of 2x brighter look plus extra moisturization. So let us see. As I said it’s a large, pretty big market. So basis the initial response we will take it nationally. Right now it is at the test market stage and we are manufacturing ourselves or it is. It is in house manufacturing. It is in house manufacturing.
Shirish Pardeshi
Okay, last question on the strategic subsidiaries I think the performance consolidation these are all things which I understand but then.
Mohan Goenka
Voice was not clear on the brilliant.
Shirish Pardeshi
And TNC though we know understand last year was consolidation and there was some hiccups. But over FY25 if we, if I, if I ask FY26 how you look at this business. I mean obviously we have a business ad these all things will happen but there are some aspirations what we have left when the consolidation was happened.
Mohan Goenka
Yeah Giri Raj.
Giriraj Bagri
Yeah. So you know when we look at FY26 both for Brillaire as well as for TMC we are looking forward to a high double digit growth in both these businesses. And there is a significant investment that we are making in both these businesses to build a brand franchise especially the top of the funnel as far as TMC and Belair are concerned. And we are already seeing some green shoots when we look at certain channels and certain categories in the month of April and May. So we should look forward to strong double digit growth in FY26 both in Man Co.
And Belair.
Shirish Pardeshi
That’s helpful. Giri, just one follow up on here. Can you say spell out what is the revenue we clocked for KMC and Berilla and what is the EBITDA loss we would have made on these two brands?
Mohan Goenka
Specific fees we will avoid. Okay.
Shirish Pardeshi
But revenue if you can share.
Mohan Goenka
Yeah, revenue. Revenue is about 150 crores and about 50 crores.
Shirish Pardeshi
Okay, thank you Mohiji and all the best.
Mohan Goenka
We have excellent plans for. Excellent plans for healthcare. And Gulraj is here. We have launched some significant brands in Jadu Care and we have robust plans for healthcare growth. So Gulraj, you can also you know pitch in and share some ideas plans if you want for healthcare. Right.
Gul Raj Bhatia
So I think we’ve done fairly well in the healthcare portfolio as indicated by Mr. Mohanji where we grew by 13% annualized and it was led by three four categories. One was the D2C portfolio Jandu Care which had a growth of nearly 50% and it was led both by new product launches and and various initiatives led by crude marketing, better return on investments in the marketing space and also more aggressive claims in terms of our product benefits and efficacy. We also did well on some of the other categories in the portfolio in the OTC space on brands like Nithyam, brands like cough syrup where we grew in strong double digits along with the hair juices also and on the Medeco business which we reach out to doctors for.
We had good growth there also both in quarter four and for the whole year going forward we are going to drive improved marketing campaigns focusing on a better return on investment considering the fact that consumer shifts are also happening post Covid consumers have by and large reduced spends on health supplements, immunity products etc. And they are spending more on discretionary products, more on consumption outside the home in terms of restaurants, QSRs, et cetera. So keeping these trends in mind we are focusing on other categories besides health supplements which can drive incremental volume, market share gain and overall growth.
So there will also be focus on NPDs but I think the focus will be compared to previous is more on consolidating and leveraging the NPD’s relaunch to see how we are able to scale them up in a profitable manner. We’ll also be doing a lot more initiatives on the medical business by way of improved Dr. Connect, Medeco marketing and also reaching out to more a class doctors and focusing on certain therapies which would give us higher returns.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Harith Kapoor with investech. Please go ahead.
Harit Kapoor
Yeah, good evening. I had a few questions. So one was, you know, if you look at the pain management category for just, you know, for your business, it’s been about 7/4 now of single digit growth. Obviously there was one big quarter but single digit kind of growth. You know Moji, from a slightly medium to long term perspective, is is that the kind of trajectory that we should also kind of look at? Mid, mid single high single, you know, mid single range in a category that has reasonable, you know, has got reasonable. History. You know, it should be kind of a normative growth or do you believe, you know, you can, you know, in any way innovations etc can also kind of add a little bit more, you know, additional growth to this space? I asked it’s a high margin segment so just that was my first question.
Mohan Goenka
Hareet, you’re right. Pain management is an important segment For Imami, it almost contributes to 25% of our overall revenues and it has got three, three products. One is Jhandu Balm which is the mother brand Green color and Jandu Ultra Power and Menthol Pain Balm. These are the three portfolios. Ultra Power and Menthol plus has consistently been growing but unfortunately the Green Pack which is the main product is showing signs of some stress. So. But anyhow, we have a robust plan for new products in pain management. We have launched a couple of products under this Jandu and this year again we are launching one or two new offerings. So we are relying heavily on NPDs for growth in the pain portfolio.
Harit Kapoor
Got it. We should see some of that into fiscal year 26. Also the NPD.
Mohan Goenka
Yes, yes, absolutely. This year you will see two new launches.
Harit Kapoor
The second was a short one. This, you know, smart and handsome growth 7%. Is that indicative of the secondaries as well that retail level secondary growth is also, you know, 6, 7, 8%.
Mohan Goenka
Absolutely. So after a long time we have seen some momentum in Smart and Handsome. You guys know that this brand was continuously declining and post the relaunch we have arrested the degrowth. We are yet to see double digit growth. What is targeted. But as I had mentioned earlier also that now this is a male grooming segment. It’s not just the cream and the face wash. So you would see very extensive male grooming products coming under Smart and Handsome. And of course we would see growth in this Smart and Handsome at the same time. I must say that the strategy for is also ready by bcg.
Hopefully we will be rolling out in the second quarter. So by and large I think we have addressed most of the issues whether it is the Keshe King man company with Zyrus we are very excited with Delayer also I think should grow smart and handsome. The decline has been arrested Healthcare we are very optimistic of double digit growth other than pain management I think which we are expecting 5, 6% growth. Others should do slightly better.
Harit Kapoor
The last question was on price growth. So this quarter looks like a 3% type of growth at overall level on pricing. So just wanted your outlook on what should be kind of pricing growth assumption for F26. I know it’s normally a 2% up and down little bit but just your sense on what it looks like for. 26
Mohan Goenka
should expect in similar lines around 2 to 3%.
Harit Kapoor
Got it. I’ll come back for more. Thank you. Thank you very much.
operator
Thank you. A reminder to all the participants that you may press Star and one to ask a Question. Next question comes from the line of Ajay Thakur with Anandrati Securities. Please go ahead.
Ajay Thakur
Hi sir. Thanks for taking my question. So sir, I had two questions. One was just wanted to get a sense on the summer products. How the volume trajectory had been for both Navaratna and the dummy coal given the fact that their revenue growth has been pretty robust during the quarter. And also if you can share some outlook for Q1 for the rest of the summer season.
Mohan Goenka
This is a difficult one, Ajay. As I said, summer has not gone down so well unfortunately. We had of course done some primaries in Q4 so the secondaries are slightly on the lower side because of rains. So we have yet another four weeks of summer left. Let us hope if some markets rebound then we might see low single digit growth. But we are. I would. Manish, do you want to add anything? Manish Gupta is here. So many things.
Manish Gupta
Yeah, yeah. So all I will say is that from a Q4 perspective what the change we did in our strategy was to streamline how we load up the trade and everything. So we’ve been very disciplined in our loading and the results are showing in the Q4 results. And both the primary and secondary part was very nice. April is where the pain point is. We have been discussing that the consumer optics have not been in line with the preparation that all the brands have done across the categories. And it is more pronounced in talc. Oils are not so much impacted.
Talc is the one which is facing the heat and within that, as Mohanji mentioned earlier, it’s southern parts of the lower Maharashtra and the parts of release and all that. Now from an outlook perspective all I can say is that SALC is the one where we, we are right now keeping our fingers crossed. But having said that mid singles should not be a problem. Repeating the base is always tough. That’s current challenge we are having internally. Oil so far looks robust. So while we would have loved more I would take that mid singles still is not far away.
That helps.
Ajay Thakur
Quite helpful, sir. The second question was more on the. The correction in the crude oil prices and we given that have some bit of a correlation with both LLP and packaging cost. Have you seen some benefit accruing in both these segments and and you know outlook on the gross margins. That will be helpful.
Mohan Goenka
So Ajay, you have seen that our GCS have been at all time high and I have continuously been maintaining that. I don’t see any pressure on our GCS this year also. So you are right, the costs are benign and there might be Slight benefit might be I think point five basis points or something. So let us hope, let us see if the prices remain at the same level then we don’t see any pressure on margins.
Ajay Thakur
Understand? Thanks sir. Thanks for that.
Mohan Goenka
We also have Vivek who looks after the international business. And international now contributes to almost 20% of our total revenue. It’s a significant large business for us. Would you want to say anything on the growth or our plans for anything you want to share.
Vivek Dhir
Sir? I think Bangladesh has improved quite a bit. When we had closed quarter three we were in bit of a trouble in line with the industry over there. But Q4 we had seen a rebound. January was still okay. February, March, we delivered very good numbers over there. GCC is still showing some signs of the growth and everything. Russia CAS is also decent for us. Only place of trouble is one or two countries in Africa which are decent for us. But by and large more places we are seeing good growth numbers over here.
Mohan Goenka
Okay.
operator
Mr. Thakur, are you done with your question?
Ajay Thakur
Yeah, yeah, I’m done with my question. Thanks sir.
operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. Next question comes from the line of Percy Pantaki with IFL Capital. Please go ahead.
Percy Panthaki
Hi sir. Very glad to see back in positive territory. Can you give some more detail on exactly what was the work that went behind turning this brand around and sort of getting this performance back.
Mohan Goenka
So Percy, it was all around360 plan, right from changing the brand name to you know, very aggressive marketing, Both urban, rural TV, OTT digital, so everything I think it was in Q4 we went very aggressive, you know, on go to market strategy. So it was a well planned rollout strategy for smart and handsome. We hope that the momentum continues. You know that is what we are seeing. We are more optimistic on the fish was category because that is a very fast growing category. And on the other male grooming launches that we have planned for this year, we have plans in place, we will be rolling out in Q2.
So we have been working for last two years now and you would see some aggressive plans for this year for Smart enhancer.
Percy Panthaki
Got it sir. Has there been any change in formulation along with the relaunch?
Mohan Goenka
A minor trick happens per se which is in line with what the consumer needs are. So that is what it is. But overall I can say our overall strategy, what we have been planning for quite some time now has done well other than some dent in summer, I think most of the brands are in a very strong position as Far as manpower is concerned with Zyrus coming in I think that is complete now second quarter as I said we will be rolling out with the strategy on Keshe King what BCJ has recommended. So with that I think more or.
Less. All our brands relaunches are done. So we are going aggressive on advertising. We have done Almost I think 650, 670 crores of advertising this year which is quite significant and we will continue with that this year. So that’s it. I think if summer fares well for the next four weeks hopefully we will see some good numbers.
Percy Panthaki
Got it, Got it Sir, just another question is on your innovation rate what is the contribution of new products for this fiscal FY25 that is just closed and what would that similar number be.
Mohan Goenka
Targeted at for FY26?
Gul Raj Bhatia
It is around 4% kind of revenue what we have generated from the products. Launched in last two to three years.
Percy Panthaki
And will it be similar going ahead. Or.
Gul Raj Bhatia
So it should be in the range of 3% kind of minimum. Depends again depends on the success we. Get going around that.
Percy Panthaki
Got it. And what is the thought process in terms of any new product launch or not new product but I would say any adjacencies, any new categories that you want to get into is it. I mean you did mention that in Smart and Handsome it would be a broader male doming place so I’m assuming some more subcategories would get launched there. But apart from that do you think that your product portfolio is complete apart from the usual sort of varianting innovation renovation that goes on in any FMCG company Or would you like to enter any adjacent subcategories over the next two, three years.
Mohan Goenka
That is never complete. There are a lot of opportunities you know in. In Jandu in In Pain I said there are a couple of launches planned. Male grooming in Kishking also There are some D2C areas that we are going to come out with this year itself. We came with 25 new products, you know primarily Nando Care. So we are this NPD momentum would continue. It is now a different strategy altogether for ecom coupons, very different offerings for mass market there are different openings for empty there are different. So it’s like you know there are a lot of opportunities identified and which would all be ruled out in either in quarter wise, you know.
So. Yeah.
Percy Panthaki
Got it sir. Monitor, can you just announce for Star one I see there are no more people in the queue so just announce it once and if nobody comes up then we can close the call.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. On behalf of Imami Limited that concludes this conference. Thank you for joining us. You may now disconnect your lights.
Mohan Goenka
Thank you.
Gul Raj Bhatia
Thank you to all the participants for. Joining us today on our fourth quarter results. Thank you, ifl for arranging the call. Thank you.
Giriraj Bagri
Thank you.