Eveready Inds net loss narrows to Rs 38 crore in Q4 FY22

26 Apr 2022 , 09:22 AM

Operating income during the quarter declined by 12% YoY to Rs 241.24 crore.

The company reported a negative operating EBIDTA of Rs 35.61 crore in Q4 FY22. It had recorded an operating EBIDTA of Rs 40.99 crore in Q4 FY21.

Pre-tax loss in the fourth quarter was Rs 52.17 crore as against a loss of Rs 636.70 crore reported in the same period last year.

Eveready Industries reported a net profit of Rs 47.48 crore in FY22 as against a net loss of Rs 309.13 crore in FY21. Operating income fell 3% to Rs 1,206.76 crore in FY22 over FY21.

The dry cell battery maker said that the quarter continued to experience lower demand in all categories as inflation ruled high. Also, very significant input cost increases due to supply chain disruptions and overall inflationary pressures impacted margins severely. Price increases taken to offset this resulted in market resistance.

The flashlights category continued to suffer on account of dumped imports from China.

The quarter and the year were also impacted due to one-time provisioning done as a measure of prudence, for certain disputed receivables & inventories, and on account of restructuring costs, for a total amount of Rs 27 crore and additional communication and consultation costs of Rs18 crore as against the comparable quarter last year.

The company has imitated several measures to make a quick recovery, which include de-bottlenecking legacy inefficiencies in the organization structure, onboarding of Bain & Company for advice on improving operational efficiencies & strategy, activating cost rationalization initiatives to offset some of the inflationary impact and taking actions to overcome disruptions in supply chain.

With these efforts, the company expects to return to a higher level of profitability in 2022-23.

However, the uncertainties caused by the ongoing war at Ukraine and the pandemic in many parts of the world, including countries which are supply bases for the company, continue to cast a shadow of unpredictability.

Eveready Industries India offers a range of products such as batteries, flashlights, lighting solutions, and home appliances. It is one of the leading manufacturers of dry cell batteries in India.

The scrip advanced 0.36% to currently trade at Rs 320.25 on the BSE.

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