The pandemic and the lockdown led to a sharp decline in consumption due to rising unemployment and a significant drop in demand from low-income groups, the Kolkata-based firm said.
This led the consumers shift towards more essential items like food, groceries and hygiene products thereby affecting the sale of its discretionary line of products.
All these developments arising out of an unprecedented and extraordinary environment that prevailed across the globe, impacted the company's performance significantly in Q4FY20, the company said.
Emami's total expenses in the fourth quarter of FY20 stood at Rs 434.15 crore, down 10.46 per cent as against Rs 484.92 crore in the year-ago quarter.
For the fiscal year 2019-20, net profit was marginally down to Rs 302.30 crore. It was Rs 302.53 crore in the preceding financial year.
Its revenue from operations in 2019-20 was Rs 2,654.88 crore, down 1.47 per cent. It was Rs 2,694.63 crore in 2018-19.
In FY20, revenues at Rs 2,655 crore marginally declined by 1 per cent due to a 17 per cent decline in Q4FY20.Tight cost control measures helped improve gross margins by 130 bps at 67 per cent and despite one-time write-off amounting to Rs 11 crore, cash profits at Rs 639 crore grew by 2 per cent during the year with margins growing by 80 bps, the company said.
Emami Director Mohan Goenka said financial year 2019-20 has been one of the most challenging years for the company.
While commenting on the outlook Emami Director Harsha V Agarwal said the company has geared to respond to these demands, which are relevant in today's time and has forayed into hand sanitizer, soaps and handwashes under the Boroplus brand and few other products in health care under the Zandu brand.
We are aggressively pushing to launch more products in both personal hygiene and healthcare categories in the next one to two months, he said.
As the current situation is gradually improving to reach normalcy the demand for discretionary products could quickly come back to normal, he added.
Shares of Emami Ltd were trading at Rs 223.55 per unit on the BSE, up 0.88 per cent over previous close.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.