Companies

Eveready posts 45% drop in profit at ₹50 crore

Our Bureau. Kolkata | Updated on February 10, 2021 Published on February 10, 2021

Eveready Industries India Ltd reported a 45 per cent drop in net profit at ₹50 crore for the quarter ending December 31, 2020. The profit in the year-ago-period stood at ₹91 crore.

The company’s statement, however, maintained that net profit in the corresponding quarter of last fiscal included an exceptional item pertaining to profit on sale of land in Chennai amounting to nearly ₹90 crore.

The profit before tax before inclusion of exceptional items saw an over 180 per cent jump year-on-year to ₹61 crore.

Operating income, during the quarter under review, saw a 7 per cent jump to ₹340.28 crore.

According to a company statement, Eveready’s core categories of flashlights and batteries continue to witness “a steady demand” due to low imports from China and disruptions caused in the unorganised market due to the pandemic. With rural recovery happening, flashlight demand is expected to remain steady, too.

The lighting segment could partially recover from weak consumption and supply constraints, while the turnover in the small appliance segment is yet to reach scale “due to weak demand”.

For the quarter under review, turnover for batteries and flashlights saw a 9.4 per cent and 15.3 per cent, respectively. Growth in lighting segment was marginally higher, while small appliances’ turnover saw an over 12 per cent growth.

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Published on February 10, 2021
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