Eveready Industries India Ltd (EIIL) based in Kolkata, reported a significant 73.5 percent increase in consolidated net profit to Rs 25.44 crore for the second quarter of the current fiscal. This increase is attributed to easing input cost, as stated in a regulatory filing. Compared to the same quarter last year, the company posted a net profit of Rs 14.73 crore.
However, despite the increase in net profit, revenue from operation during the July-September quarter was down three per cent to Rs 364.9 crore compared to Rs 375.7 crore in the year-ago period. But the company’s operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin increased to 12.7 per cent from 11.4 per cent in the second quarter of the 2022-23 fiscal.
Eveready Industries attributed the nearly flat revenue performance to the distribution revamp, which is expected to normalize in the coming quarters. The company also noted that battery-operated flashlights continued to decline, despite healthy growth in the rechargeable category.
The company expressed that “Favourable trends in key raw materials and stability in exchange rate created suitable conditions for margin expansion,” in a statement. According to the Managing Director Suvamoy Saha, “Our emphasis to grow within our existing business mix saw us successfully execute a very complex route to market in our distribution structure.”
Additionally, the initial moderation in uptake in batteries is expected to resolve in the coming quarters as stocks get replenished via more efficient pathways. In an effort to appeal to the new generation of consumers, Eveready Industries has unveiled a new logo and tagline as part of its revamp journey with the new management under the Dabur family.