Eveready Industries jumps after robust Q3 earnings

Eveready Industries India jumped 4.90% to Rs 38.50 at 14:25 IST on BSE after net profit surged 151.7% to Rs 4.53 crore on 12.4% increase in operating income to Rs 296.59 crore in Q3 December 2013 over Q3 December 2012.

The result was announced during trading hours today, 7 February 2014.

Meanwhile, the BSE Sensex was up 17.95 points, or 0.09%, to 20,328.69.

On BSE, so far 1.68 lakh shares were traded in the counter, compared with an average volume of 2.04 lakh shares in the past one quarter.

The stock hit a high of Rs 38.50 and a low of Rs 36.50 so far during the day. The stock hit a 52-week high of Rs 39.60 on 9 January 2014. The stock hit a 52-week low of Rs 14.05 on 7 August 2013.

The stock had outperformed the market over the past one month till 6 February 2014, rising 0.69% compared with the Sensex's 2.29% fall. The scrip had outperformed the market in past one quarter, gaining 44.77% as against Sensex's 2.80% decline.

The small-cap company has an equity capital of Rs 36.34 crore. Face value per share is Rs 5.

Operating EBITDA (earnings before interest, taxes, depreciation and amortization) rose 19.4% to Rs 25 crore in Q3 December 2013 over Q3 December 2012.

During the quarter, product categories such as batteries and lighting products - saw healthy turnover growth - contributing to the sales growth. Significant growth of profit is a reflection of better price realization, cost conservation and savings in finance cost, the company said in a statement.

The company said it had significant adverse impact on input costs during the current year on account of the steep rupee depreciation in the recent past. However, it could pass on the impact to the market by taking up prices of batteries and flashlights. Market has absorbed the price increases and outlook for batteries & flashlights appears stable, the company said.

Eveready said it is also basing its growth for the year on the new products - especially the various lighting products and devices. The company is hopeful that these should result in sustainable improvement - in sales as well as in margins.

Also, given the above operational improvement and tight working capital management, the company is expecting to reduce its borrowings substantially during the current financial year, which will have positive impact on future profitability through lower interest costs, the company added.

Eveready is the country's market leader of batteries and flashlights - selling more than 1.2 billion batteries and 25 million flashlights. Apart from these, Eveready now offers a basket other products. Most of these products have been launched in the recent past and include lanterns, radios, rechargeable fans, power back up for mobile phones, CFL & GLS lamps & other lighting products and packet tea. Eveready has an extensive distribution network of 3000 distributors reaching all the way down to 5000 population towns.

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