India's Eveready Q2 profit tanks hit by a charge, higher costs

Eveready Industries India

28/10/2022 12:40

Oct 28 (Reuters) - Eveready Industries India Ltd
 ERDY.NS  on Friday said September quarter profit more than
halved, hit by a charge related to a loan repayment and higher
input costs.  
    Consolidated profit for the three months ended Sept. 30 fell
to 147.3 million Indian rupees ($1.79 million) from 310.4
million rupees a year earlier, it said in an exchange filing.
     Revenue from operations rose 5.3% to 3.76 billion rupees. 
    The profit was hurt by a non-cash charge related to an
unamortised front-end fees of a loan repaid during the quarter
and an adjustment to deferred taxes, Eveready said in a
statement. The charge will even out for the full year, it said,
without giving any further details.  
      Quarterly expenses rose about 11% to 3.55 billion rupees,
after input costs jumped 32.8% from a year ago. 
    Demand was "sluggish" in the wake of high inflation and a
delayed monsoon, Suvamoy Saha, managing director, said, adding
that the company is revamping it business mix for key markets.  
     The changing product mix and better realization helped
expand revenue last quarter, the company said. 
     Indian companies, including Eveready, account for
4.21%-4.79% of the global consumer battery market which is set
to expand by $9.7 billion through 2026, as per a report by
market research firm Technavio. 
    Shares of Eveready closed 1.3% down at 295.85 rupees after
the earnings were announced.
($1 = 82.4625 Indian rupees)
 (Reporting by Biplob Kumar Das in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))