Eveready net up 50%, plans to raise up to Rs 150 via QIP

Eveready Industries India today reported a 49.90% jump in net profit at Rs 15.89 crore for the first quarter ended June 30, 2015, against Rs 10.6 crore for the corresponding period of the last fiscal.

The net sales for the quarter stood at at Rs 347.92 crore, up 7.55% compared with Rs 323.48 crore in the same quarter a year ago.

The board has declared an interim dividend of Rs 1 per share.

Beside, Eveready Industries India today announced its plan to raise funds upto Rs 150 crore through qualified institutional placement (QIP). The board has approved the fund-raising plan, which would be utilised for capital expenditure, long term working capital and reduction of high cost debt.

Eveready has a debt of Rs 208 crore as on March 2015 compared to Rs 225 crore a year before. "A part of the proceeds would go to retire part of company's high interest debt. Apart from some long term debt, some of the inputs are bought on credit, which carry high interest. We want to pay that off and want to buy raw materials in cash," Eveready Industries managing director Amritanshu Khaitan said. It plans to bring down its annual interest cost from 34 crore in 2014-15 to about 15 crore in 2016-17.