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FMCG major Emami Limited on Thursday posted a 60 per cent drop in consolidated net profit to Rs 142 crore for the quarter that ended March 2023, on muted demand.

The company posted a consolidated net profit of Rs 354 crore in the corresponding period of FY22.

Revenue from operations during the quarter was up nine per cent to Rs 836 crore, from Rs 768 crore registered in Q4 of FY22.

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The company attributed the decline in net profit to muted demand for personal care products and excessive rainfall in many parts of the country in March, which impacted the demand for summer products.

“Inflation in rural areas reached 6.8 per cent in FY23, the highest level in the previous nine years, and rural inflation surpassed urban inflation for the first time since FY18. Additionally, excessive rainfall in many parts of the country in March impacted the demand for summer products,” the company said in a statement.

“Despite the challenging demand scenario on account of high inflation, muted rural sentiments and unseasonal rains, we have delivered a resilient profit-led growth in Q4 FY23. After a few quarters of ongoing pressure on input costs, we have been able to expand our gross and EBIDTA margins delivering 20 per cent EBIDTA growth,” Emami vice-chairman and MD Harsha V Agarwal said.

For the full year, the company’s revenue at Rs 3,406 crore grew by seven per cent. Net profit for FY23 slipped to Rs 627 crore, down from Rs 836 crore over the previous year.

In FY23 the gross margins were at 64.7 per cent, contracting by 160 basis points due to inflationary pressure and an unfavourable portfolio mix in the first three quarters, the statement said.

The domestic business grew by four per cent in FY23 on a higher base of COVID contextual categories like in pain management and healthcare range, it added.