MAM

FY-2015: Emami marketing spends up 41%, PAT up 21%

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2015/05/18/emami.jpg?itok=Y4Rw9Od3

BENGALURU: Emami Limited spent 41.3 per cent more towards its Advertisement and Sales Promotion (ASP) in FY-2015 (year ended 31 March, 2015, current year) at Rs 391.19 crore (17.7 per cent of Total Income from Operations or TIO) as compared to the Rs 277.41 crore (1.5 per cent of TIO) in the previous year.

The company’s profit after tax (PAT) increased 20.6 per cent in the current year to Rs 485.45 crore (21.9 per cent of TIO) from Rs 402.27 crore (22.1 per cent of TIO) in FY-2014. Emami’s TIO in FY-2015 at Rs 2217.25 crore increased 2.18 per cent from the previous year’s TIO of Rs 1820.77 crore.

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

Among the brands in Emami’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.

Historically, Q3 (the festival season in India) of a financial year has been the best quarter for Emami in terms of TIO and PAT, which peak in Q3. The next best quarter has been the fourth quarter of a financial year before sales and profits dip to the lowest in a year in Q1 (the summer and the beginning of the educational holiday season in India) followed by a rise in Q2.

Refer to Fig A below for ASP during the 16 quarter period starting Q1-2012 until the current quarter.ASP in Q4-2015 was 66.5 per cent more at Rs 82.47 crore (14.9 per cent of TIO) as compared to the Rs 49.53 crore (11.1 per cent of TIO) spent in the corresponding year ago quarter but 30.8 per cent lower than the Rs 119.25 crore (17.2 per cent of TIO ) in the immediate trailing quarter.

During the 16 quarter period under consideration in this report, Emami’s ASP was the highest in absolute rupees in the immediate trailing quarter (Q3-2105) at Rs 119.25 crore (17.2 per cent of TIO), while in terms of percentage of TIO, it was 21.3 per cent (Rs 102.84 crore) in Q1-2015. The lowest ASP by Emami in both in absolute rupees terms and as percentage of TIO was in Q4-2013 at Rs 36.6 crore and 9.2 per cent respectively during the period under consideration.

In Fig A, the slope of the graph represented by the broken maroon line indicates that ASP in terms of percentage of TIO shows a slight increasing trend, and intercepts the Q4-2015 ordinate at 16.26 per cent, as opposed the 14.9 per cent actually spent by the company. The slope of the broken maroon line indicates that the ASP in terms of absolute rupees intercepts the Q4-2015 ordinate at Rs 94.3336 crore as compared to the Rs 82.47 crore actually spent by the company.

As mentioned above, the company’s TIO is generally the highest in Q3 and lowest in Q1 of a financial year. In Q4S-2015, Emami reported TIO of RS 553.66 crore, which was 24.2 per cent higher y-o-y as compared to Rs 445.71 crore, but declined 20 per cent as compared to the Rs 692.26 crore in Q3-2015. Please refer to figure B below, in which the quarter on quarter percentage change of TIO is indicated by the red line with yellow markers.

During the 16 quarter period under consideration, Emami TIO was highest in Q3-2015 at Rs 692.26 crore and lowest in Q1-2012 at Rs 299.91 crore. The black broken trend line shows that the company’s TIO is increasing linearly. The slope of the trend line intercepts the Q4-2015 ordinate at Rs 574.948 crore, indicating that the company’s performance at 553.36 crore was lower than that indicated by the trend line.

The company’s PAT follows the same trend of being the highest in Q3 and the lowest in Q1 during the period under consideration in this report. PAT in Q4-2015 at Rs 138.33 crore (25 per cent of TIO) was 21.9 per cent more than the Rs 111.15 crore (24.9 per cent of TIO) in Q4-2014, but declined 24.7 per cent from Rs 183.70 crore (26.5 per cent of TIO) in Q3-2015. Please refer to Fig C below.

During the 16 quarter period under consideration, the highest PAT both in terms of absolute rupees as well as percentage of TIO was in the previous quarter at Rs 183.7 crore and 26.5 per cent respectively.The lowest PAT in terms of absolute rupees and percentage of TIO was in Q1-2012 at Rs 41.5 crore and 13.8 per cent respectively.

The slope of the pink broken trend line indicates its intercept of Q4-2015 at 23.52 per centof TIO as compared to the actual 25 per cent of TIO achieved by Emami. The slope of the broken blue line shows its intercept with Q4-2015 atRs 134.6008 crore as compared to the Rs 138.33crore PAT actually achieved by the company. Both trend lines inclinedlinear increments. 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/22/ashish%20%281%29.jpg?itok=y3ndaYCZ
DAN, a friend in need

InDeed, Dentsu Aegis Network’s newly launched CSR Advisory, will facilitate corporate investments by companies in Corporate Social Responsibly, through insights & a brand-led approach.

MAM Media and Advertising AD Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/22/shergill%20%281%29.jpg?itok=ot1krGRJ
Pitchfork Partners hired by Nyka Events

Nyka Events, a premier event agency based out of Mumbai, has signed on Pitchfork Partners Strategic Consulting LLP to advise them on delivering various change management initiatives the firm is currently exploring to take the organization into the next phase of its growth cycle.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/22/Yepme.jpg?itok=RspIrgeY
Online fashion brand Yepme expands into Europe

MUMBAI: Yepme announced its plan to expand into Europe. The company has launched uk.yepme.com to service customers across UK. The brand footprint is also being extended beyond its own webstore across Europe through presence in a large online marketplaces in the UK, Germany, Italy, France and Spain.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/22/ShopClues800.jpg?itok=nCzJyfWZ
Make the most of this bargain, says ShopClues

MUMBAI: ShopClues, one of India’s largest managed marketplace known for its deals and unparalleled price points, is now ready to roll out its ShopClues Surety programme alongside its Super-Bargain Sale.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/22/Lalit-Malhotra.jpg?itok=bVSP6VG7
Anchor receives CMO design award, Penta to be top brand by '18

MUMBAI: Anchor Electricals (A Panasonic group company) was the proud recipient of Stars of the Industry Group Design Plus Excellence Awards associated with BBC Knowledge and powered by CMO Asia for Product Design Excellence.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/Sudhanshu-Vats-800x800.jpg?itok=eglcJLds
Viacom18 cracks down on counterfeit merchandise

MUMBAI: In its bid to counter the growing menace of counterfeit merchandise, Viacom18 Media Pvt. Ltd. had undertaken an investigation that led to a raid in Mumbai’s market Abdul Rehman Street. Viacom18 Media is one of India's fastest growing entertainment networks and a house of iconic brands that...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/Gopa%20Kumar.jpg?itok=GVGZkfZU
Isobar India Bags Digital Mandate for FOX Life and NatGeo India

MUMBAI: Isobar India has been appointed as the digital partner for Fox Networks Group's flagship channel brands, National Geographic and Fox Life. The agency will handle their digital and social media mandates. Speaking on the appointment, Fox Networks Group vice president content and...

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/ITV-Inside-800x800.jpg?itok=YBE8YC5X
Music, Online and BJP crash FMCG party in weeks 1 to 6 of '17

BENGALURU:FMCG advertisers had 92.25 percent of the share of television advertisement insertions among the total TV ad insertions by top 10 advertisers across genres list in weeks 1 to 6 of 2017 (Saturday, 31 December 2016 to Friday, 10 February 2017). Of the total of 1,862,229 insertions by top...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/Robby%20and%20Thiagaraja-800x800.jpg?itok=JyAOVA96
FCB creates Blue Star 'cooling' campaign

MUMBAI: Blue Star, known for its unmatched innovation, has yet again taken the ‘Precision cooling’ of their inverter AC to a whole new level where it allows setting the temperature in decimals. The new commercial, conceptualized by FCB Interface ratifies Blue Star’s USP in the latest brand campaign...

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories