Eveready Industries India gained 1.90% to Rs 88.50 after consolidated net profit surged to Rs 63.07 crore in Q4 March 2020, higher than net profit of Rs 4.54 crore in Q4 March 2019.
Consolidated net sales declined 32.4% to Rs 224.08 crore in Q4 FY20 over Q4 FY19. Profit before tax (PBT) stood at Rs 78.09 crore in Q4 FY20, higher than Rs 6.06 crore in Q4 FY19. Current tax expense jumped to Rs 14.23 crore in Q4 FY20 as against Rs 1.08 crore in Q4 FY19. The result was announced after trading hours yesterday, 1 July 2020.
The company reported exceptional gain of Rs 62.03 crore on sale of land at Hyderabad. The profitability was aided by rise in gross margin in the core segments of batteries and flashlights and improvement in operating margin due to additional cost savings measures. The discontinuance of the packaged tea business further helped the company in improving margins and releasing working capital, Eveready Industries said in a regulatory filing.
The company said that the supply chains are yet to become normal given the severity of the effects of the COVID pandemic. The company's core categories of batteries and flashlights, however, are witnessing a healthy demand, given the sharp decrease in dumped imports from China and the disruptions caused to the unorganized market for non-availability of supplies. The situation in the battery segment is likely to improve further once full effect of implementation of the BIS standards comes into force.
Further, once normalcy is restored in the supply chain, the company would be able to augment its turnover through its various channels of distribution.
Meanwhile, Aditya Khaitan, vice chairman, has been designated as the chairman of the company.
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Eveready Industries India is engaged in the business of marketing of fast-moving consumer goods (FMCG), such as dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products. The firm also distributes a range of electrical products.
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