Eveready plans to pare debt, Q1 Net up 157 pc at Rs 10.6 cr

Eveready Industries Ltd today reported 157 per cent rise in net profit at Rs 10.6 crore for the June quarter and said it will continue to focus at debt reduction with improved cash flow in the recent quarters.
In the same period last year, it had posted a Rs 4.12 crore net profit.
During the quarter, batteries and lighting products saw a healthy turnover, the company said adding, it projects a stable outlook however, the delay in monsoon and hardening metal price might offset margin expansion marginally.
"We are confident that the operational cash flow can reduce debt burden, which in turn will reduce the finance cost and improve credit rating for the company. We are not considering any asset sale to reduce debt," Amritanshu Khaitan, MD of Eveready, told reporters after the company's AGM here.

The company expects to reduce its debt by around Rs 70 crore compared to Rs 51 crore in FY14' which brought down its total outstanding debt to Rs 225 crore.
Eveready had increased battery prices by around 20 per cent, which had improved profit margins.
"In July also, we have hiked price by 5 per cent for the AAA batteries. However, in the next six months we do not intend to exercise any further hike unless the cost structure goes haywire," Khaitan said.
He said in the past three months, price of zinc, a key raw material, had gone up by around 15 per cent but a stable Rupee (zinc is bought on import parity price) gave the company some breather.