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Eveready Industries rises after robust Q4 earnings

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Capital Market
Last Updated : May 11 2015 | 5:31 PM IST

Eveready Industries India rose 2.81% to Rs 270.50 at 15:22 IST on BSE after net profit rose 336% to Rs 5.45 crore on 7% increase in operating income to Rs 275.13 crore in Q4 March 2015 over Q4 March 2014.

The result was announced during trading hours today, 11 May 2015.

Meanwhile, the BSE Sensex was up 397.57 points, or 1.47%, to 27,502.96.

On BSE, so far 2.51 lakh shares were traded in the counter, compared with an average volume of 87,992 shares in the past one quarter.

The stock hit a high of Rs 277.70 and a low of Rs 266.40 so far during the day. The stock hit a record high of Rs 311.50 on 23 April 2015. The stock hit a 52-week low of Rs 52.65 on 9 May 2014.

The stock had underperformed the market over the past one month till 8 May 2015, falling 8.17% compared with 5.58% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 34.75% as against Sensex's 5.62% fall.

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The small-cap company has an equity capital of Rs 36.34 crore. Face value per share is Rs 5.

Eveready Industries India's operating EBITDA (earnings before interest, taxes, depreciation and amortization) rose 24% to Rs 19.29 crore in Q4 March 2015 over Q4 March 2014.

The company's net profit surged 261% to Rs 49.03 crore on 11% increase in operating income to Rs 1278.92 crore in the year ended March 2015 over the year ended March 2014. Operating EBITDA rose 37% to Rs 123.68 crore in the year ended March 2015 over the year ended March 2014.

Eveready Industries' turnover for the year rose by 11%, primarily driven by prices increases taken in the core category of dry cell batteries and a growth of 33% in the new product vertical of lighting products.

The company had implemented a fresh round of price increases in batteries during the first quarter of the current year. The market absorbed the same. Though the volumes remained flat, battery operations remained healthy and contributed to the EBIDTA margin expanding to 9.7% of net sales during the current year from a 7.8% level in the previous year, the company said in a statement.

The operating EBIDTA for the current year grew to Rs 123.68 crore (Rs 90.59 crore in the previous year), despite the company increasing spends on A&P (advertising and promotions) by Rs 28.60 crore (2% of net sales). Reduction in Finance Costs from Rs 41 crore for the previous year to Rs 33.60 for the current year also contributed to the higher profits in the current year, the company said.

The new product launch of LED bulbs (around which the current advertising campaign is centered) towards end of the year, is gaining market traction and is expected to be a major contributor of growth in the coming year.

Outlook on batteries and flashlights remain stable. The company said it stands by its plans to improve operating margins and reduce debts substantially in the coming year.

Eveready is the country's market leader of batteries and flashlights - selling more than 1.2 billion batteries and 25 million flashlights. Apart from these, Eveready now offers a basket other products which include lanterns, radios, rechargeable fans, power back up for mobile phones, LED, CFL & GLS lamps & other lighting products and packet tea.

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First Published: May 11 2015 | 3:19 PM IST

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