Eveready Industries India, the country’s largest dry cell battery maker, has recorded a 234 per cent increase in profit before tax (PBT) to Rs 30.29 crore in the June quarter on the back of upward revision in prices and better product mix even as turnover fell.
Operating income for the quarter fell by 18 per cent to Rs 263.45 crore primarily because of a complete stoppage/disruption of economic activities during the initial phases of the countrywide lockdown. Net profit during the quarter increased 245 per cent to Rs 23.61 crore.
Eveready said battery and flashlight volumes for the quarter were lower than that in the corresponding quarter of the previous year as optimal sales could not be achieved in April 2020 due to lockdown restrictions. However, in May and June, battery volumes picked up and was higher by around 12 per cent over corresponding months of the previous year. Flashlight volumes, too, during the time were higher by 6 per cent. But overall volumes during the quarter were lower due to disruptions in April.
Ebitda margin for the battery segment was at 21.9 per cent on a turnover of Rs 176.9 crores during the quarter, mainly due to favourable commodity prices coupled with upward pricing revisions taken to mitigate the impact of a 7 per cent rupee depreciation and general inflation, Eveready said. The flashlight segment had a margin of 18.7 per cent during the quarter on a turnover of Rs 50.2 crores. However, Eveready’s lighting and appliance segments turnover was down.
Eveready said the situation in the battery segment should continue to look positive as full effect of implementation of the BIS standards comes into force.
The flashlight segment was also likely to benefit as many of the unorganised market players were adversely impacted by cash flow constraints arising out of economic disruption, it added. Eveready mentioned in its notes to accounts, that a promoter group level restructuring was underway to monetise assets to meet various liabilities of the companies (part of the promoter group).