Kolkata-based battery and flashlight major, Eveready Industries India Ltd (EIIL), announced a substantial increase in consolidated net profit for the second quarter of the current fiscal year. The company reported a 73.5% rise in net profit to Rs 25.44 crore, compared to Rs 14.73 crore in the same quarter last year.
Despite the positive net profit growth, revenue from operations during the July-September period was slightly lower, decreasing by three percent to Rs 364.9 crore, down from Rs 375.7 crore in the previous year. However, Eveready Industries attributed this to a distribution revamp, stating that revenue performance is expected to normalize in the coming quarters.
The company’s operating EBITDA margin also saw improvement, increasing from 11.4% to 12.7% in the second quarter of the 2022-23 fiscal year. Eveready Industries highlighted favorable trends in key raw materials and stability in the exchange rate as contributing factors to this margin expansion.
Suvamoy Saha, Managing Director of Eveready Industries, expressed satisfaction with their emphasis on growing within their existing business mix. He stated that their successful execution of a complex route to market in their distribution structure has allowed for growth. Additionally, Saha mentioned that the initial moderation in battery uptake is expected to resolve in the coming quarters as stocks are replenished through more efficient pathways.
In addition to their financial performance, Eveready Industries unveiled a new logo and tagline under the new management of the Dabur family. This strategic move aims to attract the new generation of consumers and align with the company’s revamp journey.
Overall, Eveready Industries has demonstrated promising growth in net profit despite a slight decrease in revenue, and their focus on distribution revamp and attracting new consumers positions them for continued success in the future.
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