MAM
Emami reports consolidated net sales at Rs 807 cr
Mumbai: In a recently organised board of directors meeting, Emami reported consolidated net sales of Rs 807 crore in Q2 FY23, which ended on 30 September 2022, which grew by four per cent and posted a three-year CAGR (compound annual growth rate) of eight per cent.
Due to continued inflation, rural slowdowns, and liquidity pressure, the domestic FMCG industry remained soft during the quarter, and demand sentiment remained muted.
Net sales increased by eight per cent during the quarter, excluding the pain management and healthcare ranges, which saw corrections due to lower consumption of covid contextual products and the new subsidiary, Helios Lifestyle.
Modern trade and e-commerce both performed exceptionally well, increasing by 28 per cent and 55 per cent , respectively. The contribution of modern trade and e-commerce channels to domestic revenues increased to 16.5 per cent in Q2FY23.
International business grew by 17 per cent in the third quarter, owing to strong performance in most markets. The MENA and CIS regions performed well in international markets.
Gross margins contracted by 230 basis points in Q2FY23 due to inflationary pressures combined with an unfavourable portfolio mix due to exceptionally high sales of pain management products last year.
PBT fell 18 per cent year on year to 186 crore due to the previous year’s pressure on gross margins, the inclusion of new subsidiary costs, upfront marketing investments, and strategic outlays on distribution expansion in rural, digital, and modern trade channels. On a three-year CAGR basis, it grew by 17 per cent.
PAT of Rs. 180 crore fell three per cent year on year but increased 23 per cent year on year. Nonetheless, when compared to peers, the company has one of the highest gross margins at 66.6 per cent, PBT margin of 23 per cent, and a PAT margin of 22 per cent.
Helios Lifestyle (The Man Company) became a subsidiary of Emami after increasing its stake from 49.53 per cent to 50.40 per cent. The board of directors declared an interim dividend of 400 per cent or four rupees per equity share.
Emami Limited vice chairman and managing director Harsha V. Agarwal said, “We are happy that despite the challenging business & industry environment, the first half delivered net sales growth of 10 per cent. With our strong focus on cost control, distribution expansion, aggressive marketing campaigns, and driving penetration, we expect to deliver double digit growth with healthy margins in the second half. Thus, on a full year basis, we aspire to deliver double digit growth with higher Ebitda (earnings before interest, taxes, depreciation, and amortisation) than the previous year for our core business.”
Emami vice chairman and whole-time director Mohan Goenka said, “Consumer demand remained muted across markets with high inflation affecting consumption, especially in the rural markets. As anticipated, we witnessed a correction in the Covid contextual portfolio of pain management and healthcare products, which grew significantly during the last two years. In the given context, the quarter delivered a low single-digit growth on a year-on-year basis, however, the 3-year CAGR has been impressive with a high single-digit growth of eight per cent if compared to pre-pandemic levels. Our international business also maintained its strong run, delivering a double-digit growth of 17 per cent, notwithstanding various global and geo-political uncertainties.”
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
