The stock was at its highest level since October 29, 2021. It had hit a 52-week high of Rs 413.30 on October 6, 2021. At 12:56 pm, Eveready Industries was up 5 per cent at Rs 364, as compared to 0.37 per cent rise in the S&P BSE Sensex.
The company, while announcing December quarter (Q3FY22) results on February 4, 2022, said the battery category will revert to its earlier level of profitability now that all adverse costs have been passed on. Similarly, the flashlights category will be on a stronger pitch with augmentation of its range with competitive products. The lighting and electrical category will commence its growth trajectory in a profitable way as the range and supply chain has been made efficient.
"With the above, the Company is expected to turn in stronger performance within a short period of time. However, these benefits may not quite accrue within Quarter 4 and the performance during the quarter is likely to be subdued prior to transition to a stronger next fiscal," Eveready Industries said in an outlook.
Meanwhile, in Q3FY22, the company's net profit more-than-halved or was down 53 per cent year-on-year (YoY) at Rs 23.71 crore due to weak operational performance. Operating revenue declined 4 per cent YoY at Rs 326 crore, while operating earnings before interest tax and depreciation and amortization (EBITDA) contracted 8 percentage points at 36 per cent.
The battery category saw an unprecedented cost push exceeding 20 per cent in the quarter. The flashlights category continued to suffer on account of dumped imports from China. The company said the entire adverse cost impact in battery raw materials has now been passed on to the market.
Meanwhile, in separate regulatory filing on February 10, 2022, Eveready Industries said a division bench of the Delhi High Court has upheld a single-judge order which had stopped the sale of assets of the company. CLICK HERE FOR FULL REPORT
As per December 31, 2021, shareholding pattern, the promoters held 4.84 per cent stake in Eveready Industries. Bodies corporate have 52.80 per cent holding, while individual shareholders held 33 per cent stake in the company, data shows.
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