Eveready Q3 net profit up 55% to Rs 8.4 crore amid lower sales

Kolkata: Battery maker Eveready Industries India Ltd on Tuesday reported a 55-per cent year-on-year jump in net profit to Rs 8.4 crore for the quarter ended December.

The bottomline stood at Rs 5.4 crore in the corresponding period a year ago.

The Kolkata-based company’s net profit saw a rise despite a dip in revenue from Rs 330 crore to Rs 305 crore during the period.

The improved performance was driven by an expansion in the EBITDA margin, which rose from 7.3 per cent to 8.1 per cent in the quarter under review.

However, Eveready Industries acknowledged challenges in the form of "softer rural consumption" in key battery and flashlight segments, as well as ongoing "value diminution" within the lighting industry.

"During Q3, we have seen a consistent trend in margins Q-o-Q (quarter on quarter), following supportive input cost environment, traction for premium products and efficiency initiatives that we are taking. The softer momentum on topline reflected weaker recovery in rural demand for batteries and flashlights and prevailing value erosion in the lighting industry," MD Suvamoy Saha said.

"While topline growth was softer due to weaker rural demand recovery and the lighting industry's value erosion, we believe this value reduction is temporary. We're confident in our robust product portfolio and are moving towards more profitable segments," he added.