💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined 3.30% YoY to INR 1,928.04 Cr in FY 2024-25. Export sales grew 29.6% YoY to INR 149.00 Cr, while domestic revenue declined approximately 5.4% YoY to INR 1,779.04 Cr.

Geographic Revenue Split

Domestic sales contributed 92.27% (INR 1,779.04 Cr) and Export sales contributed 7.73% (INR 149.00 Cr) of total revenue in FY 2024-25.

Profitability Margins

Gross and net profitability were impacted by lower Net Sales Realisation (NSR). Profit After Tax (PAT) margin was 1.35% (INR 26.01 Cr) in FY 2024-25, down from 4.23% (INR 84.30 Cr) in FY 2023-24.

EBITDA Margin

EBITDA margin contracted to 7.65% (INR 147.55 Cr) in FY 2024-25 from 12.04% (INR 240.15 Cr) in FY 2023-24, a decrease of 439 basis points due to sustained pressure on realizations.

⚙️ Operational Drivers

Raw Materials

Imported pulp is the primary raw material, representing a significant portion of manufacturing costs.

Import Sources

Global markets for imported pulp; specific countries are not listed, though pricing pressure is noted from China and Indonesia imports.

Raw Material Costs

Raw material costs rose in FY 2024-25, exerting pressure on performance. The company uses hedging and strategic sourcing from multiple sources to mitigate supply disruptions.

Manufacturing Efficiency

Sales volumes improved in FY 2024-25 compared to FY 2023-24, though specific capacity utilization percentages were not provided.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth is targeted through cost reduction, productivity enhancement, and efficiency improvements. The company is specifically focusing on expanding its export footprint, which grew 30% in FY 2024-25, and leveraging its diversified mix of newsprint and paperboard to optimize asset utilization.

Products & Services

Newsprint, Writing and Printing Paper, and multilayer coated Paperboard.

Brand Portfolio

Emami Paper.

Market Expansion

Targeting growth in export markets, which reached INR 149.00 Cr in FY 2024-25.

🌍 External Factors

Industry Trends

The paper industry is facing pricing pressure from low-priced imports. Emami is positioning itself for the future by diversifying its product mix and increasing its focus on the export segment to build resilience.

Competitive Landscape

Key competition arises from international manufacturers in China and Indonesia who are exporting products into India at lower price points.

Competitive Moat

The company's moat is built on its diversified product portfolio (Newsprint and Paperboard) and its established brand under the Emami Group. Sustainability is supported by ISO certifications (9001, 14001, 45001) and cost-reduction initiatives.

Macro Economic Sensitivity

Highly sensitive to global pulp prices and international trade dynamics, particularly import dumping from Asian competitors.

Geopolitical Risks

Trade barriers and pricing strategies from China and Indonesia impact domestic market competitiveness.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by pollution norms and manufacturing standards, evidenced by ISO 9001:2015 and environmental certifications.

Environmental Compliance

Compliant with ISO 14001:2015 (Environmental Management System) and ISO 45001:2018 (Occupational Health and Safety).

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material supply disruptions (imported pulp), market demand fluctuations affecting asset utilization, and liquidity risks from a high debt burden.

Geographic Concentration Risk

Revenue is primarily domestic (92.27%), with a growing but small export concentration (7.73%).

Third Party Dependencies

High dependency on international pulp suppliers; mitigation involves sourcing from multiple vendors.

Technology Obsolescence Risk

The company has implemented a robust IT security framework to mitigate cyber threats like data breaches.