Eveready Q1 Net up 10% to over Rs 22 crore

Battery maker Eveready Industries India (EIIL) today reported a rise of 10 per cent in its net profit at Rs 22.36 crore for the quarter ended June 2016.
The company had registered a profit of Rs 20.27 crore in the corresponding quarter a year ago.
Operating income for the quarter under review stood at Rs 354.35 crore, compared with Rs 348.16 in the year-ago period, a company statement said.
Eveready's net sales in the quarter moved up marginally by 1.18 per cent to Rs 371.35 crore as against Rs 366.99 crore in the corresponding period a year ago.
The 'goodwill' amount lying in the books of the company amounting Rs 478.50 crore as of March 31, 2015 was adjusted against general reserves and retained earning as part of meeting the requirements of Indian accounting standards, the company said.

EIIL Managing Director Amritanshu Khaitan said outlook on batteries remained stable but may improve significantly if regulatory support was received against dumping of batteries in the country.

The lighting segment, however, did not register any growth during the quarter. CFL lamps registered a de-growth of nearly 30 per cent but that was in keeping with overall market trends.
However, LED products registered a turnover of Rs 39.34 crore during the quarter against Rs 25.08 crore during the previous year's corresponding period.
Improvement measures for flashlights, though initiated, may take a while to gain root, the company said adding, lighting business was likely to be on high growth spurred by LED products despite de-growth in CFL lamps.

The company remained optimistic on appliances and said it should also contribute to growth in the coming quarters.
It added counter measures against dumping of batteries have been afoot for some time - both from an internal marketing perspective as well as in seeking regulatory support within the legal framework.
The anti-dumping investigation on imports of 'AA' batteries (accounting for nearly 70 per cent of the market) from China and Vietnam initiated by the Directorate General of Anti-dumping and Allied Duties was now believed to be in the closing stages, EIIL officials added.
(REOPENS CCM5)
Meanwhile, Eveready was planning a new manufacturing plant at Goalpara in Assam.

"The capex plan for this year (2016-17) is Rs 100 crore as we are coming up with the new manufacturing plant. The capacity will be 400 million batteries in the new facility," said company's Managing Director Amritanshu Khaitan at the sidelines of the AGM.
The facility was expected to come on stream by March 2017 on a 17 acre plot.
Meanwhile, the company continues to scout for tie-up opportunity with a FMCG company to harness their huge retail distribution network.