The Hindu Business Line : Eveready Industries' Q4 net profit up 125 pc

Eveready Industries India Ltd, the flagship company of the BM Khaitan Group, has registered a 13-per-cent growth in its net sales and a 125-per- cent rise in the net profit for the quarter ending March 31, 2006.

In the last quarter, the company's net sales increased to Rs 170.49 crore from Rs 150.73 crore registered in the corresponding quarter of the previous year. Net profit jumped to Rs 44.41 crore from Rs 20.2 crore.

Addressing a press conference, Mr Deepak Khaitan, Vice-Chairman and Managing Director, said that while the total battery industry grew by three per cent, Eveready Industries' grew by seven per cent.

Market share up

As a result, the company's market share increased to 48 per cent from 45.6 per cent. The BPL battery business, which was acquired by Eveready, holds a seven per cent market share. So the total market share is 55 per cent.

For the 12-month period ending on March 31, 2006, Eveready Industries' net sales increased by 12 per cent and ended at Rs 732.81 crore (Rs 654.92 crore).

The profit before depreciation, interest and taxes (PBDIT) grew by 8.5 per cent and ended at Rs 89.97 crore. PBDIT from real estate was Rs 76.62 crore marking a growth of 221 per cent. Profit after tax went up by 69 per cent at Rs 79.66 crore.

Mr Khaitan ruled out any real estate sale in the current financial year but hoped that something could be struck in 2007-08. "In the current fiscal we are hoping to double profit after tax from operations," he said.

Regarding the company's wholly owned subsidiary, Powercell Battery India Ltd (earlier with BPL), he said it would not be merged with the parent. Under the present management, in the last four months of 2005-06, the company registered a profit but failed to come out of the red. Meanwhile, Eveready Industries has closed its electro-magnetic dioxide plant at Thane near Mumbai because it became unviable. A compensation package has been offered to the 120 employees of that unit.

The packet tea division of Eveready Industries has sold 7,000 tonnes in 2005-06 and recorded a turnover of Rs 75 crore. This division has continued to register a CAGR of 20 per cent.

By the end of the last fiscal, the company's total borrowing has dropped to Rs 375 crore from Rs 509 crore. In the current fiscal, Mr Khaitan said, it is expected to grow by another Rs 50 crore.