Dry cell battery major Eveready Industries on Tuesday reported around 16 per cent year-on-year increase in its consolidated net profit to ₹29.56 crore for the second quarter this fiscal from ₹25.44 crore for the same period last fiscal.
The company’s revenue remained flat at ₹362.61 crore for the quarter under review as against ₹364.89 crore for the corresponding period last fiscal, according to a stock exchange filing.
The company, in a statement, said the moderation in revenue was attributed to value degrowth in batteries as Carbon Zinc volumes marked a decline in favour of Alkaline. Flashlights record double-digit growth led by rechargeable segment while lighting value erosion continued at a lower rate than earlier, adding to the moderation.
“Strong value and volume growth reported in Alkaline batteries in Q2, y‐o-y basis. Alkaline now constitutes 5.4 per cent mix of battery against 3.3 per cent in Q2FY24. Alkaline volume growth at 75 per cent y‐o-y helps to consolidate our market share journey. The Carbon Zinc segment continues to be impacted by slow rural demand,” the company said, adding rechargeable flashlights segment showed a 63 per cent y‐o-y value growth in Q2FY25 fuelled by new product launches and premiumization. “This positive trend is expected to continue throughout FY25 to help maintain double digit growth profile in overall flashlights. The intensity of decline in battery‐operated flashlights has slowed down,” it said.
Commenting on the results, Suvamoy Saha, Managing Director, Eveready Industries India, said, “We are pleased to report another quarter of sustained profitability, driven by 3 per cent growth in EBITDA and 15.7 per cent improvement in profit after tax in Q2FY25. This was supported by higher traction in alkaline portfolio, strong growth momentum in rechargeable flashlights backed by strategic efforts towards premiumisation and new product launches.”
Eveready was making significant progress on its new alkaline battery plant, which will enable it to drive balanced growth by optimizing quality and costs, Saha added.