Eureka Forbes zooms 29% in 2 days as profit nearly doubles in Q4FY23

Going forward, the management is confident of driving sustained performance on the back of differentiated innovations, an elevated customer experience, and a more efficient business mode

Shares of Eureka Forbes hit three-month high of Rs 516.95, surging 14 per cent on the BSE in Wednesday's intra-day trade amid heavy volumes. In the past two days, the stock of the household appliances has zoomed 29 per cent after its net profit nearly doubled to Rs 16.3 crore in the March quarter (Q4FY23). The company had posted Rs 8.2-crore net profit in the year ago quarter.

However, revenue declined 8 per cent year-on-year (YoY) at Rs 508 crore as against Rs 552 crore, owing to weak market conditions.

Q4FY23 earnings before interest, taxes, depreciation, and amortization (ebitda) margin expanded by 300bps at 9.3 per cent; Absolute ebitda grew 35.6 per cent YoY at Rs 47.4 crore.
 

The management said execution of specific transformation initiatives helped improve Ebitda margin. This, combined with a 72 per cent YoY reduction in net debt, will allow the company the headroom to invest for growth.

Looking ahead, the management is confident of driving sustained performance on the back of differentiated innovations, an elevated customer experience & a more efficient business mode.

Eureka Forbes is India's leading health and hygiene brand. Eureka Forbes' product portfolio encompasses water purification, vacuum cleaning & air purification. It has direct, retail, e-commerce and institutional sales channels, an inventive business partner network, and one of the most expansive service networks across India.

At 10:23 AM, the stock was trading 9 per cent higher at Rs 493.70, as compared to 0.52 per cent rise in the S&P BSE Sensex. It had hit a 52-week high of Rs 537.05 on January 18, 2023. Average trading volumes on the counter more-than-doubled with around 196,000 shares having changed hands on the BSE till the time of writing of this report.