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The Rs 5-paid Eveready Industries stock slipped to Rs 16.9 in Friday’s trading by over three per cent. The company, however, reported net profit in the FY13Q1 after losses in the preceding two quarters.
In the April-June quarter results that came in after trading hours showed a slim profit of Rs 3.35 crore against Rs 7.97 crore in the corresponding period of 2010-11.
Because of a one-time provisioning in the January-March quarter of Rs 75 crore for the “irrecoverable” investments in zero-networth Novener SAS, its European acquisition in July 2009, Eveready had reported a net loss of Rs 86.01 crore.
In the September FY11-12 it had recorded a loss of Rs 4.84 crore. According to the management, margins were under pressure because of depreciation of rupee against dollar (for import of zinc for batteries) as well as increase in commodity prices.
In the past one year, three institutional investors — American Funds and two funds of ICICI Prudential — have exited the stock. HSBC Global and UTI Master Value pared their holdings.
jayanta.mallick@thehindu.co.in
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