Eveready PAT dips 52% to Rs 15 cr on non-cash charge of unamortised fees

Company says the charge will even out for the full year; revenue up 5% to Rs 376 cr

The country’s largest dry cell battery maker, Eveready Industries India, recorded a profit after tax (PAT) of Rs 14.73 crore in Q2FY23, down by 52.5 per cent. In the year-ago period, profit had stood at Rs 31.04 crore.

The company said that PAT 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 will even out for the full year, it added.

Revenue from operations, however, rose to Rs 375.75 crore in Q2 from Rs 357.49 a year ago. The firm attributed this to better realisation and product mix. "The lighting segment witnessed traction as newer products were launched,” it added.

Commenting on the performance, Suvamoy Saha, managing director, said, “The performance was satisfactory despite sluggish demand in the wake of high inflation and a delayed/deficit monsoon. 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.” 

Saha added that the management team would put the highest emphasis on consumer engagement and focus on healthy top line improvement, to put the company back on growth track, even if that means making short-term sacrifices on profitability.