Dry cell battery-maker Eveready Industries India Ltd reported a net loss of ₹442 crore for the quarter ending March 31. The company had reported a net profit of ₹64 crore in the corresponding period last fiscal.

Losses were primarily on account of an exceptional item, which amounted to a write down of ₹630 crore.

Exceptional items consist of provision for outstanding amounts of inter-corporate deposits and recoverables, write-off for interest accrued on such deposits and recoverables and write-off for outstanding capital advance as on 31 March 2021, the company said in a statement.

“The above adjustments are non cash items and have no impact on the day to day business or operations of the company," Eveready said.

During the quarter under review, the company reported a 22 per cent rise in operating income, YoY, to ₹273 crore. Operating income in the year-ago-period was ₹224 crore. Gross margin and EBITDA increased by 26 per cent and 43 per cent respectively.

For FY21, Eveready saw a 3 per cent rise in operating income at ₹1,249 crore, while it reported a net loss of ₹380 crore.

For May, the company has initiated a price hike of 4-5 per cent in the batteries segment to counter a “sharp rise in raw material costs”. A similar price hike has also been initiated in the flashlights segment. “These actions should mitigate any adverse impact on margins,” it said adding that the company is witnessing a steady increase in demand for batteries and flashlights and there has been a marked decrease in Chinese dumped offerings. There has also been an improvement in the lighting segment. The small appliances vertical is yet to achieve scale.

The pandemic and subsequent disruptions have also delayed promoter group level restructuring, the company added in its statement. However, “all efforts” are being made to address the issue of “outstanding liabilities”.

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