Eveready Industries India Ltd (EIIL) registered a 52 per cent drop in standalone net profit at ₹15 crore, for the quarter ended September 30, 2022, as compared with ₹31 crore profit same period last year.

The profit was impacted adversely by a non-cash charge of unamortised front end fees of a loan repaid during the quarter and an adjustment to deferred taxes. This is expected to even out for the full year, the company said in a press statement.

Revenue from operations on a standalone basis increased by five per cent at ₹376 crore as against ₹357 crore same period last year. The top line registered growth despite muted demand in the midst of high inflationary conditions on the back of better realisation and product mix.

Revenue, EBITDA

Revenue growth was at 10 per cent during the quarter under consideration and 15 per cent for H2 for continuing businesses, excluding the discontinued business of home appliance. The lighting segment witnessed traction as newer products were launched, the release said. The EBITDA margin was down at 11.4 per cent (15.7 per cent) during the quarter under review.  

“Cost of input materials started easing off, however they were still elevated during the quarter. Weaker rupee to a strong dollar also had an adverse impact which could not be fully passed on. EIIL is focused on enhancing business mix and optimising procurement and other costs in order to achieve mitigation,” it said.

Despite sluggish demand

According to Suvamoy Saha, Managing Director, EIIL, the performance was satisfactory despite sluggish demand in the wake of high inflation and a delayed/deficit monsoon. The management team is looking to put highest degree of accent on consumer engagement along with a healthy top line improvement to put the company back on growth track even if that means making short term sacrifice on profitability.

“We are meticulously pursuing a plan to enhance our business mix and towards that we are in the process of revamping our go-to- market in all our key categories. Together with the strengths we enjoy in the form of brand pull and distribution reach, we are staging new communication around our products and engaging with our core audience,” he said in the statement.

The company’s scrip closed at ₹294.15, down by 1.72 per cent on the BSE on Friday.