In This Article:
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Revenue: 362.4 Crore for Q2 FY25, compared to 364.9 Crore previously.
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EBITDA Margin: 13.2% for the quarter and 13.7% for the half year.
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Profit After Tax (PAT) Margin: 8.1% for the quarter and 8.3% for the half year.
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Batteries Market Share: Retained a 53% market share.
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Alkaline Battery Growth: 62% growth in value.
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Flashlights Revenue Growth: 16% growth during the quarter and 7% for the half year.
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Manpower Cost: Increased to 12% of revenue for the quarter, up from 11.3% the previous year.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eveready Industries India Ltd (BOM:531508) retained a robust 53% market share in the battery segment, demonstrating ongoing leadership.
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The alkaline battery segment saw an impressive 62% growth in value, indicating a promising trend as consumer preferences shift.
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The company is building a manufacturing facility for alkaline batteries, which will be the only one in the country, aiming to drive gains in quality and cost efficiency.
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Flashlights segment reported a 16% revenue growth during the quarter, driven by innovative product launches.
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The company is focusing on expanding its product lineup and distribution reach, which is expected to spur growth in the lighting business.
Negative Points
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Overall revenue for the quarter was muted at 362.4 Crore compared to 364.9 Crore previously, indicating stagnant growth.
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The rural segment showed weak demand, leading to a modest contraction in the overall battery segment.
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Price erosion in the lighting industry continues to impact the consumer segment, affecting overall top-line growth.
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Manpower costs increased by 12% due to investments in the lighting segment, impacting profitability.
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The company faces challenges in the carbon zinc battery market, which still constitutes a significant portion of domestic demand.
Q & A Highlights
Q: Given the price erosion from Q3 of last year, do you expect revenue to maintain at the 350 crore level for Q3 and Q4? A: Generally, Q1 and Q2 are stronger quarters for us, while Q3 and Q4 are typically below 350 crore. We aim to be closer to that level, but it may not match Q1 and Q2 numbers. However, it will definitely be better than Q3 FY24 due to our growth momentum and strategic initiatives like RTM. - Suvamoy Saha, Managing Director, Executive Director
Q: Can you provide an update on the alkaline battery manufacturing facility and its expected impact? A: We are in the process of finalizing the location, with a decision expected by mid-December. The facility is expected to be operational by H2 FY26, which will help us achieve cost savings and improve margins. We are also considering adding other product lines to enhance economic viability. - Suvamoy Saha, Managing Director, Executive Director