Eveready Industries India Ltd’s standalone net sales climbed up by 7% year on year to reach Rs 372.63 crore in Q2 September 2020 from Rs 348.28 crore in Q2 September 2019. The announcement was made after market hours on Friday, 13 November 2020. Standalone profit before tax jumped 209% to Rs 65.2 crore in Q2 September 2020 from Rs 21.09 crore in Q2 September 2019. Current tax expenses rose massively to Rs 11.83 crore in Q2 September 2020 from Rs 3.55 crore in Q2 September 2019. Eveready’s operating EBITDA boosted up by 140% YoY to Rs 75.77 crore in Q2 September 2020 from Rs 31.59 crore in Q2 September 2019. EBITDA margin witnessed an improvement after reaching 20.3% in Q2 September 2020 from 9.1% in Q2 September 2019.
The company said turnover for the quarter did recover part of the losses of the previous quarter aided primarily by healthy sales in the battery and flashlight segments. The core segments of batteries and torches registered significant business increase over the corresponding quarter of the previous year, owing shared credit to a healthy demand paired with a sharp reduction in cheap Chinese imports. The segments of Lighting and Appliances also witnessed a spike in demand in the run-up to the festive season across the country, resulting in a turnover growth for the quarter by 7% in comparison to that of the previous year. Eveready added that gross margin was significantly greater by 26% in comparison to the previous year due to a better turnover mix towards the more profitable segments of batteries and flashlights. The COVID-19 crisis and subsequent lockdown coerced the various establishments of the company to operate in a restricted manner which resulted in lower employee cost, lower distribution cost, lower promotional spends and lower overheads further leading to enhanced profitability. Consequently, operating EBIDTA escalated by 140% as compared to the previous year. The discontinuance of the packet tea business further aided the company in improving margin and releasing working capital.
“The situation in the battery segment should continue to look positive as imports continue to remain low with the BIS standards having come into force – providing a level playing field to domestic manufacturers. The flashlight segment is also likely to benefit as many of the unorganised gray market players may have been adversely impacted by cash flow constraints arising out of economic disruption,” Eveready commented. Shares of Eveready Industries India were locked at at Rs 154.65 apiece on BSE, up 1.71 percent over previous close. Eveready is the country’s market leader of batteries and flashlights – making a sale more than 1.2 billion batteries and nearly 2S million flashlights.