Eveready Industries shares lose charge; fall 5% post Q2FY25 results

Shares of dry cell maker Eveready Industries India dropped 4.90 per cent to the day's low of Rs 362.65 during intra-day deals on the BSE. The fall in the company’s stock price followed the announcement of its financial results for the second quarter of the current fiscal year.

 

The company’s profit after tax (PAT) grew 15.7 per cent year-on-year (Y-o-Y) in the September quarter of FY25 to Rs 29.5 crore, compared to Rs 25.5 crore reported in the corresponding quarter of the previous fiscal year, the company said in a regulatory filing on the BSE. Eveready Industries' total income from operations stood at Rs 362.4 crore in Q2FY25, down 0.7 per cent from Rs 364.9 crore reported in the same period a year ago.

 

At the operating level, the company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at Rs 47.7 crore, up 3 per cent from Rs 46.3 crore reported in Q2FY24.

 

The operating Ebitda margin increased by 50 basis points to 13.2 per cent in Q2FY25 from 12.7 per cent in Q2FY24.

 

“This was supported by higher traction in our alkaline portfolio and strong growth momentum in rechargeable flashlights, backed by strategic efforts toward premiumization and new product launches. After gradual value moderation in lighting, volumes have started to rebound with renewed focus on high-potential SKUs and scaling up in newer channels like modern trade, e-commerce, and institutional selling," said Suvamoy Saha, Managing Director of Eveready Industries India.

 

"We are making significant progress on our new alkaline battery plant, which will enable us to drive balanced growth by optimising quality and costs. Our focus on empowering business leaders will cultivate a culture of innovation and effective decision-making, enabling teams to identify and pursue new growth niches. The road ahead appears promising as we expect a positive impact from the revamped RTM," he added.

 

Founded in 1934, Eveready Industries India is a leading player in the batteries and flashlights industry, with an emerging presence in lighting. Eveready products were first sold in India in 1905, marking the beginning of the Eveready journey. The company’s manufacturing facilities are spread across six locations: Matia, Lucknow, Noida, Haridwar, Maddur, and Kolkata. As of November 13, 2024, the company has a market capitalization of Rs 2,666.90 crore and is a constituent of the BSE SmallCap index.

 

The SmallCap stock has a 52-week range of Rs 504.90 - 295 on the BSE.

 

Around 2:25 pm on Wednesday, the company’s shares were quoted at Rs 365.90, down 4.05 per cent from its previous close of Rs 381.35 on the BSE. Meanwhile, the benchmark BSE Sensex was trading 775.28 points, or 0.99 percent, lower at 77,899.90 levels.