May 24, 2011, 06.13 PM IST | Source: CNBC-TV18

Battery business may drive growth for FY12: Eveready Ind

Speaking to CNBC-TV, Deepak Khaitan, vice chairman of Eveready Industries, said that its battery business is going to be a growth driver for FY12.

Deepak Khaitan, Vice chairman , Eveready Industries

Battery manufacturer Eveready Industries India posted a fourth quarter (January-March) net profit of Rs 3.87 crore, down 96% year-on-year due to lower sales and a one-time exceptional gain in the year ago quarter. The companys net sales for the three-month period fell 10.3% from a year ago to Rs 204.1 crore. 

Speaking to CNBC-TV, Deepak Khaitan, vice chairman of Eveready Industries, said that its battery business is going to be a growth driver for FY12.

Our torch business is also looking at a bit aggressive growth this year. We are launching a rechargeable torch as a new product in the market and we are also looking at growing our lighting business, said Khaitan.

Eveready Industries Q4 net profit down on lower sales

Below is a verbatim transcript of Deepak Khaitans interview with CNBC-TV18s Mitali Mukherjee and Sonia Shenoy. Also watch the accompanying video.

Q: You raised prices in last December, are you looking to do that again and where does the situation stand in terms of the input cost pressure you face?

A: Yes, we did a price increase in the month of December. It has just established itself in the market. Its very difficult for an FMCG company to take a price increase but by time it has established itself well, we are watching the market on the expectation of the price and hopefully, we will have to take another price increase near about August.

Q: How is the battery business looking and what kind of growth are you setting out for FY12 in the business?

A: Basically, our growth driver for FY12 is going to be the battery business and in the battery business, our rechargeable and alkaline businesses are going forward because volumes in the market share are small. Our torch business is looking at a bit aggressive growth this year. We are launching a rechargeable torch as a new product in the market. Plus, we are also looking at growing our lighting business both at the general lighting service/incandescent lamps (GLS) and the compact Fluorescent Lamps (CFL).

Q: Where are your other hats now and what are the FY12 growth drivers? More importantly, what are the main challenges for Mcnally Bharat Engineering and what you are looking at from that point of view?

A: Mcnally Bharat Engineering is on a solid path of growth. We have an order book of about 4500 crore already, we have a guidance going forward of achieving only Mcnally Bharat, which its subsidiaries also.

Mcnally Bharat did a turnover of about 1800 crore last year, and we hope to touch about 2500 crore this year and on a consolidated business, we hope to achieve a turnover of 3500 crore this coming year. We have a very ambitious order booking going forward. We do hope that we will be competitive enough to achieve that order booking to maintain this sort of growth.

Q: Any inorganic plans on that front with reference to Mcnally Bharat?

A: We are on the look out for acquisitions which will be suitable for Mcnally Bharat and it is getting more and more difficult but if any attractive acquisition comes, we will look at it seriously.

Eveready Ind stock price

On April 17, 2014, Eveready Industries India closed at Rs 49.70, up Rs 1.75, or 3.65 percent. The 52-week high of the share was Rs 50.00 and the 52-week low was Rs 14.05.


The company's trailing 12-month (TTM) EPS was at Rs 1.40 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 35.5. The latest book value of the company is Rs 80.37 per share. At current value, the price-to-book value of the company is 0.62.

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