Battery and flashlights major, Eveready Industries India, reported 216 per cent increase in net profit to Rs 58.02 crore in the quarter ended September, on the back of strong demand in batteries and flashlights coupled with cost control measures. Operating income of the company was higher by about 7 per cent to Rs 372.63 crore in the September quarter, compared to Rs 348.28 crore in the same period last year.
Eveready Managing Director Amritanshu Khaitan said this was the highest-ever quarterly profits without any other income. Earnings before interest, taxes, depreciation, and amortization (Ebitda) margin at more than 20 per cent was also the best.
The core segments of batteries and torches registered significant increases over the corresponding quarter of the previous year. The turnover from batteries grew by 14 per cent during the quarter while flashlights grew by 8.6 per cent. A strong demand combined with a sharp reduction in cheap Chinese imports helped the segment. In addition, the firm took price increases to mitigate the negative impact of rupee depreciation which further aided turnover.
The Ebitda margin for the battery segment was 31.1 per cent on a turnover of Rs 239.6 crore. Going forward, Eveready expects the batteries and flashlights segment to continue to witness a healthy demand, given the sharp decrease in dumped imports from China and disruptions caused to the unorganised market because of the pandemic.
The lighting and appliances segment also recovered from a poor Q1. Khaitan said the lighting business had turned around while appliances had cut losses.