Eveready Industries registers 29% fall in Q1 net profit at ₹22 crore

Eveready Industries India Ltd registered a 29 per cent drop in standalone net profit at ₹22 crore for the quarter ended June 30, 2022, as compared to ₹31 crore for the same period last year.

Revenue from operations on a standalone basis increased by nearly 19 per cent at ₹335 crore during the quarter under review as against ₹282 crore in the same period last year.

Healthy topline performance

Healthy growth in topline performance was backed by volume gains, despite a market slowdown due to inflationary conditions, the company said in a press statement. Being the largest player in the dry cell battery market, EIIL is leveraging its expertise to introduce new products in the market that will set the revenue momentum for the next few years.

“PAT mirrored the trend in operating performance. The company is focussed on driving manufacturing efficiencies with prudent cost management across various verticals to further improve profitability,” the release said.

Burmans, the promoters of Dabur India, recently took over as the promoters of Eveready Industries, pursuant to an open offer.

The company’s gross margin declined to 38.9 per cent (46.5 per cent) during the quarter under review and its EBITDA margin came down to 12.6 per cent (20.9 per cent).

Inflation impact

Performance in EBITDA factors in the impact of raw material inflation, which could not be fully passed on, and the return of business overheads, which had been curtailed in the previous year owing to the pandemic restrictions. Further, EIIL will continue to take initiatives to keep costs under check and margins are expected to improve going forward.

According to Suvamoy Saha, Managing Director, Eveready, the 19 per cent growth in revenues was realised, despite the challenges witnessed during the quarter on account of inflationary conditions.

“Given the strong recall enjoyed by Eveready, we are making all efforts to create momentum across business segments through an enhanced portfolio that will be supported by our core strengths, i.e., sustained brand communication and effective distribution. Our reach has only become stronger over the years, and our endeavour is to further strengthen this network. With some structural improvements made within the organisation, I believe we are well poised to create new standards across all our segments of business,” he said in the statement.

The company has prioritised the augmentation of product offerings across flashlights and lighting, and these have been the core focus areas of the management during the quarter. It has onboarded several professionals at mid-to-senior level and within various functions to steer its growth momentum with a focus on driving healthy gains across all categories, the release said.

The company’s shares closed at ₹341.10, up by 7.52 per cent on the BSE on Monday.

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