Indian FMCG major Emami Ltd reported a 15% year-on-year decline in first-quarter consolidated profit to ₹138.94 crore, as rising input costs and disruptions in West Asia eroded margins despite robust top-line growth.
Revenue from operations climbed 15% to ₹1,039.21 crore, buoyed by a 20% expansion in the domestic business segment.
This mirrors trends seen in other Indian corporates, such as Hyundai Motor India, which recently reported a 35% profit decline due to similar cost pressures.
However, the company’s ability to pass on cost increases to consumers was limited, resulting in compressed profitability.
The margin squeeze reflects broader challenges facing consumer goods companies in India, where inflationary pressures on raw materials and logistics are intensifying.
The impact of West Asia disruptions on supply chains added further headwinds, disrupting the flow of key inputs and increasing freight costs.
This mirrors trends seen in other Indian corporates, such as Hyundai Motor India, which recently reported a 35% profit decline due to similar cost pressures.