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Friday, February 26, 2021

Eveready Industries Q1 results: Net profit up 3-fold to Rs 25 crore

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NEW DELHI: Battery and flashlights maker Eveready Industries India Ltd on Wednesday reported an over three-fold jump in consolidated net profit to Rs 24.98 crore for the June quarter, helped by improved gross margin and lower cost of operations. The company had posted a net profit of Rs 6.91 crore in the April-June period a year ago, Eveready Industries said in a regulatory filing.

However, revenue from operations dropped 20.46 per cent to Rs 263.44 crore during the quarter under review, as against Rs 331.23 crore earlier.

This was “primarily attributable to non-achievement of optimal sales” due to the Covid-19 lockdown, it said.

“In spite of the aforesaid turnover dip, Operating EBIDTA was higher by 60 per cent due to an improved gross margin, lower employee cost, lower distribution cost, lower promotional spends and lower overheads as the various establishments of the Company continued to run in a restricted manner even after lockdown restrictions were relaxed / removed,” it said.

Moreover, discontinuance of the packet tea business further helped the company in improving margins and releasing working capital, it added.

Total expenses were at Rs 243.11 crore in April-June, down 26.20 per cent from Rs 329.45 crore in the year-ago period.

On the outlook, the company said its core categories of batteries and flashlights are witnessing a “healthy demand, given the sharp decrease in dumped imports from China and the disruptions caused to the unorganised market” due to non-availability of supplies.

“The situation in the battery segment should continue to look positive as full effect of implementation of the BIS standards comes into force,” it said.

Shares of the company closed at Rs 146.35 on BSE, down 0.78 per cent.

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