Eveready Industries record over three-fold growth in Q3

KOLKATA: Eveready Industries reported a three-fold jump in net profit at Rs 15.33 crore for the third-quarter (Q3) ended December 31, 2014, due to lower raw material cost compared to a net profit of Rs 4.53 crore recorded in the corresponding previous quarter. Net sales of the company at Rs 325.42 crore was up 9.7 per cent in the said quarter as against Rs 296.59 crore in the corresponding previous quarter. The growth in net sales was primarily due to value growth in batteries and a 22 per cent growth in the new category of lighting products. Volume and value in flashlights, however, remained flat on account of subdued market demand triggered by weak monsoon in the preceding quarter, the company release stated.

Company officials claim the battery market remained healthy despite absorbing a number of price increases consequent to cost push. “Though part of the market growth is being taken away by low cost and low quality dumped batteries from China, the battery market remains stable. The excise duty relief of 2 per cent which stood withdrawn as on December 31, 2014, was passed on to the market immediately,” the official added.

Raw material cost in Q3 declined by 8.2 per cent at Rs 142.85 crore from Rs 155.77 crore over the previous year quarter.

EBIDTA margin expanded to 10.5 per cent during the October-December 2014 period from 8.4 per cent a year ago.