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Eveready Industries India Ltd registered nearly 79 per cent drop in standalone net profit at ₹5 crore for the quarter ended December 31, 2022, compared with ₹24 crore in the same period last year.
Revenue from operations on a standalone basis was up one per cent at ₹330 crore (₹326 crore).
Revenue growth (excluding discontinued business) stood at over 5 per cent for Q3. Target for growth was consciously moderated during Q3 to enable successful implementation of a new route-to-market programme as an initiative for long term improvement, the company said in a press statement.
“The performance was driven by premiumisation of product portfolio combined with steady realisation gains, which was further aided by focussed marketing campaign around communication and investment in branding and promotion. Based on these positive initiatives, EIIL was able to garner additional ~170 basis points market share in the batteries market during the quarter, further cementing its leadership position in dry cell batteries,” the release said.
High inflation
Profitability during the quarter was impacted by adverse movement in foreign exchange rates as well as continued high inflation in key raw materials apart from higher charges in advertising and promotion spends and investment made in strategic and operational advice taken for long-term business improvement. Some of the input cost pressures have softened during the quarter, and the impact of this will be visible in the ensuing period. The company continues to focus on enhancing business mix, optimise procurement and other costs to achieve mitigation, it said.
“I am glad to share that we have sustained our performance momentum and delivered top-line growth during the period under review. This came inspite of challenging macroeconomic headwinds aggravated by continued forex and input cost pressures together with slower demand off take. Our relentless focus on branding and communication as well as our drive to contemporize our route-to-market strategy will help us reach our consumers in a more efficient manner and drive growth,” Suvamoy Saha, Managing Director, said in the statement.
New products
During the quarter under review, the company launched several innovative products particularly in the rechargeable flashlights segment and lighting segment. It is also revamping its route-to-market strategy across all the categories and the focus has been on making the large pan-India distribution network deliver results more efficiently.
The company’s scrip closed at ₹326.60, down 0.26 per cent on the BSE on Tuesday.
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