Eveready Industries, manufacturer of dry cell batteries, saw a 40 per cent decline in net profit at Rs 21 crore for the quarter ended December 31, 2017, mainly on account of higher expenses. In the corresponding quarter last fiscal, the company had posted a net profit of Rs 35 crore.
Expenses during the quarter saw an over 9 per cent increase to Rs 347 crores against Rs 318 crore in the same period previous fiscal. Gross revenue from operations stood at Rs 370 crore.
According to a notification to the bourses, Eveready said that its operating EBIDTA was marginally lower at Rs 34 crore (Rs 35 crore) primarily on account of increase in certain costs – primarily marketing spends during the festive season – in “newer business categories”.
Operating EBIDTA margin, too declined and stood at 9.3 per cent due to cost factors necessitated for upscaling on categories like appliances and LED-based lighting.