India's Eveready Q3 reports 77% drop in Q3 profit on higher costs

Eveready Industries India

07/02/2023 12:15

BENGALURU, Feb 7 (Reuters) - Eveready Industries Ltd
 ERDY.NS  reported a 77% fall in third-quarter profit on
Tuesday, as the Indian battery manufacturer battled high costs
of raw material as well as climbing advertising and promotion
costs.
    Consolidated net profit fell to 54.4 million rupees
($657,687.94) for the three months ended Dec. 31, compared to
237.1 million rupees a year earlier.
    "Profitability during the quarter was impacted by adverse
movement in foreign exchange rates as well as continued high
inflation in key raw materials, apart from higher charges in
advertising and promotion spends," Eveready said in a statement.
    Quarterly expenses rose about 7% to 3.23 billion rupees, as
the cost of materials consumed jumped about 27% from a year
earlier.
    Battery makers globally wrestled with high costs of raw
materials in the October-December quarter although prices of
certain commodities such as lithium and cobalt began easing by
quarter-end.
    Revenue from operations rose about 1% to 3.30 billion
rupees, marking its slowest growth in three quarters.
    Shares of Eveready, which rose around 24% in 2022, closed
marginally higher at 327.10 rupees on Tuesday.
 
($1 = 82.7140 Indian rupees)
 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by
Janane Venkatraman)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))