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Battery and flashlights maker Eveready Industries India Ltd on Tuesday (November 12) reported a 16.5% year-on-year (YoY) increase in net profit at ₹29.6 crore for the second quarter that ended September 30, 2024.
In the corresponding quarter of the previous fiscal, Eveready Industries India posted a net profit of ₹25.4 crore, the company said in a regulatory filing.
The battery major’s revenue from operations dipped 0.7% to ₹362.6 crore YoY against ₹365 crore.
Eveready Industries' revenue for Q2 FY25 suffered largely due to a decline in the carbon zinc battery segment, which saw lower volumes as consumers shifted towards alkaline batteries.
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At the operating level, EBITDA was up 3% to ₹47.8 crore in the second quarter of this fiscal over ₹46.4 crore in the corresponding period in the previous fiscal.
Eveready’s EBITDA performance benefited from a better product-mix, improved operating efficiencies, and effective commodity risk mitigation strategies.
The EBITDA margin stood at 13.2% in the reporting quarter versus 12.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Segment-wise performance
While the overall battery segment experienced value de-growth, the company noted strong growth in alkaline batteries, with a 75% YoY volume increase. Alkaline batteries now make up 5.4% of the company’s battery mix, up from 3.3% in Q2 FY24, helping Eveready consolidate its market share.
In contrast, the carbon zinc segment continued to face challenges, primarily due to slow demand in rural markets. The flashlight segment showed a positive performance, with rechargeable flashlights (RFLs) achieving a remarkable 63% year-on-year value growth, driven by new product launches and premiumization efforts.
This growth is expected to continue throughout FY25, supporting the company’s aim to maintain a double-digit growth trajectory in overall flashlights. Additionally, the decline in battery-operated flashlights slowed, contributing to the more stable performance in this segment.
In the lighting category, while value erosion persisted, Eveready saw notable volume gains, particularly in subcategories such as emergency lamps, luminaries, and accessories. The company remains on track to meet its full-year internal projections and expects to break even at the operating income level.
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The company continued to invest in advertising and promotion (A&P), which accounted for 11.3% of its Q2 FY25 revenues, to strengthen the brand and communicate its new product offerings. Despite facing high raw material costs and A&P expenditures, Eveready was able to maintain margin stability.
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The results came after the close of the market hours. Shares of Eveready Industries India Ltd ended at ₹381, down by ₹9.15, or 2.35%, on the BSE.
