Battery and flashlights maker Eveready Industries India Ltd on Friday reported over three-fold jump in consolidated net profit to Rs 57.22 crore for the second quarter ended September, helped by improved gross margin and lower cost of operations.
The company had posted a net profit of Rs 18.11 crore in July-September period a year ago, Eveready Industries said in a regulatory filing.
Its revenue from operations was up 6.95 percent to Rs 372.62 crore during the quarter under review as against Rs 348.40 crore in the year-ago period.
“The turnover for the quarter did recover part of the losses of the previous quarter - aided primarily by healthy turnover in the battery and flashllght segments...The segments of Lighting and Appliances also somewhat recovered from a poor Q1 - though having still under-performed in comparison to the previous year,” Eveready Industries said.
The company's total expenses was at Rs 318.37 crore in July-September quarter, down 7.37 per cent, compared to the year-ago period.
About the outlook, the company said its core categories of batteries and flashlights continues to witness a healthy demand, given the sharp decrease in dumped imports from China and the disruptions caused to the unorganized market in the midst of the pandemic.
“The situation in the battery segment should continue to look positive as imports continue to remain low with the BIS standards having come into force - providing a level playing field to domestic manufacturers. The flashlight segment is also likely to benefit as many of the unorganised gray market players may have been adversely impacted by cash flow constraints arising out of economic disruption,” it said.
Furthermore, the government's focus on restricting imports from China is likely to benefit both the segments.
Shares of Eveready Industries India settled at Rs 154.65 apiece on BSE, up 1.71 percent over previous close.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
