Brands
Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014
BENGALURU: In keeping with its norms, Indian personal and healthcare company Emami Limited (Emami) Advertisement and Sales Promotion (Ad & SP) spend during the last quarter of FY-2014 was the lowest during the year. In Q4-2014, Emami Ad & SP at Rs 49.53 crore was down (–43.64) per cent as compared to the Rs 87.85 crore in the immediate trailing quarter Q3-2014 and just a meagre 1.18 per cent more than the Rs 48.95 crore in the year ago quarter – Q4-2013.
Notes: (1) 100,00,000 = 100 lakh = 1 crore = 10 million.
(2) All trends mentioned in this report are linear trends based on data across nine quarters starting Q4-2012 and ending Q4-2014 and across FY-2012 to FY-2014.
At 11.11 per cent of net sales, Emami’s Q4-2014 Ad & SP percentage of net sales was the third lowest over a nine month period starting Q4-2012 and ending Q4-2014. The lowest corresponding figure over the nine quarters was in Q4-2012 at 9.19 per cent of net sales (Rs 36.60 crore). During Q3-2014, Ad & SP as percentage of net sales was 15.03 per cent and during Q4-2013 it was 10.85 per cent (second lowest).
In terms of absolute rupee value terms, Emami’s Ad & SP Exp trends upwards, while in terms of percentage of net sales, it shows a downward trend. Also, in Q1-2013, and Q1-2014, Emami’s Ad& SP Exp was 18.72 per cent (second highest over nine quarters) and 18.85 per cent (highest over nine quarters) respectively of net sales. If the company follows these norms, Q1-2015 should see a substantial increase in Ad & SP Exp as percentage of net sales. Please refer to Fig 1 and Fig 1A below.
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Emami’s PAT and net sales across the quarters under consideration and the three financial years FY-2012 to FY-2014 trends upwards as per Fig 2 and Fig 2A below.
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Among the brands in the company’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
