Eveready Industries India (EIIL) jumped 8.31% to Rs 343.60 after the company's total income increased by 19% to Rs 335.4 crore in Q1 FY23 from Rs 282.1 crore in Q1 FY22.
The company said that the healthy growth in topline performance was backed by volume gains, despite a market slow down due to inflationary conditions. Being the largest player in the dry cell batteries market, EIIL is leveraging its expertise to introduce new products in the market that will set the revenue momentum for the next few years.
EBITDA fell 28.6% to Rs 42.1 crore in the first quarter from Rs 59 crore recorded in the same period last year. EBITDA margin in Q1 FY22 was 12.6% as against 20.9% in Q1 FY22.
EIIL said that the performance in EBITDA factors the impact of raw material inflation which could not be fully passed on and a return of business overheads which had been curtailed in the previous year owing to the pandemic restrictions. Further, the company continues to take initiatives to keep costs under check and margins are thus expected to improve going forward.
Net profit declined by 29.8% to Rs 21.9 crore in Q1 FY22 from Rs 31.2 crore in Q1 FY23, mirroring the trend in operating performance. The company is focussed on driving manufacturing efficiencies with prudent cost management across various verticals to further improve profitability.
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EIIL said that the company had prioritised the augmentation of product offering across flashlights and lighting; these have been the core focus areas of the management during the quarter. It had onboarded several professionals at mid-to-senior level, and within various functions to steer its growth momentum with focus on driving healthy gains across all categories. Management of commodity inflation and vendor base optimisation received critical address during the quarter.
Suvamoy Saha, managing director, said: We are glad to have commenced the year on a positive note with a robust growth in revenues, at 19%. This performance was realised, despite the challenges witnessed during the quarter on account of inflationary conditions.
Given the strong recall enjoyed by 'Eveready' we are making all efforts to create momentum across business segments through an enhanced portfolio that will be supported by our core strengths i.e., sustained brand communication and effective distribution."
Eveready Industries India manufactures batteries, flashlights and lighting.
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