Emami Ltd has posted a 3.8 times jump in profit after tax and 37 per cent increase in revenue in the fourth quarter of 2020-21 over the same period a year ago.

The company recorded a PAT of Rs 87.73 crore on a consolidated basis compared with Rs 22.75 crore in the same period of 2019-20 — a quarter marred by a nationwide lockdown towards the end.

Revenue from operations stood at Rs 730.76 crore compared with Rs 532.68 crore a year ago. However, Emami’s profit and revenue slipped on a quarter on quarter basis, indicating a slowdown in FMCG sales from the third quarter which comprises the festive months in India. Revenues fell from Rs 933.61 crore and a PAT of Rs 208.96 crore in Q3.

Mohan Goenka, director of Emami Ltd, said the company ended the year with broad based growth in brands, channels and businesses and EBIDTA grew 65 per cent despite cost pressure. “While rural demand sustained, urban demand is gradually picking up,” he noted.

Director Harsh V. Agarwal said all the company’s major brands grew by more than 30 per cent during the quarter.

“In the fourth quarter, we invested in brand building, resulting in 37 per cent growth in our ad spends, which is in line with our sales growth. With our focus on digitisation and evolved business strategies, we are confident of continuing the growth momentum despite the second wave of Covid-19,” Agarwal said.

The company said domestic and international businesses grew by 44 per cent and 28 per cent respectively in the Q4. Both the urban and rural markets performed well during the quarter and the retail channel also picked up momentum, Emami said in a statement.

Likewise, modern trade grew by 46 per cent and e-commerce continued its robust run growing by 3x. The e-commerce business increased its contribution by 200 bps to 4 per cent of domestic revenues, an Emami statement added.

However, input cost pressure weighed on the gross margin which declined by 250 basis points.

Emami ended the year with a net cash surplus of Rs 357 crore despite dividend pay out of Rs 356 crore and buyback of Rs 221 crore.