Eveready Industries profit up by 259.5 percent in 2014-15

Batteries and flashlight maker Eveready Industries India Ltd (EIIL) on Monday said its net consolidated profit in 2014-2015 rose by 259.5 percent at Rs.48.9 crore against Rs.13.6 crore in 2013-14.

In the period under review, the company's net consolidated revenue went up 10.9 percent at Rs. 1,278.9 crore as compared to its earnings of Rs.1,153.4 crore in 2013-14.

"Prices of dry-cell batteries were raised in the previous fiscal year which contributed significantly to the turnover.

"Though the volumes (in batteries) remained flat, its operations remained healthy and contributed to the EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expanding to 9.7 percent of net sales from the level of 7.8 percent," the company's managing director Amritanshu Khaitan told media persons while announcing the results for the fiscal here.

He said the battery sales contributed to 60 percent of the company's turnover during 2014-15, while the lighting division's contribution to the turnover stood at 13-14 percent.

The company is keen to grow its LED bulbs business in the coming years and is considering making these bulbs in India.

"In three years, the LED bulb business will account for Rs.700-1,000 crore of the company's business. Presently, LED bulbs contribute just one percent," Khaitan said.

The company introduced LED bulbs in the Indian market in early 2015 and now imports the same from China.

"In the coming fiscal quarters, the LED business will bring in significant money," he said.

The company is expecting LED bulb prices to dip further this year which will push up sales.

Khaitan said the company has extended its agreement with filmstar Akshay Kumar by another two years and will roll-out a new LED bulb brand advertising campaign during June-July.