Eveready Industries India Q4FY22 and Year Ended result : Co. running on loss, although reduced by 13.19% YoY; op income fell 12%

The turnover during the quarter and the year was lower by 12% and 3% respectively, while gross margin percentage came down by 7% and 5% respectively

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Eveready Industries India Limited (EIIL) is one of India’s leading consumer goods companies with its products and brands being household names over the past century. Over the decades it has been the leader in the dry cell batteries and flashlights markets in India. The company has posted its Q4FY22 and year ended financial results today, the details are :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹242.15 crore in the quarter ended on March 31, 2022 as against ₹242.81 crore in the corresponding quarter ended last year on Mar 31, 2021, decreased by 0.27%.

The company has posted a consolidated Net Loss of ₹(38.41) crore in the quarter ended on March 31, 2022 as against ₹(44.25) crore in the corresponding quarter ended in last year on Mar 31, 2021. The Loss reduced by 13.19%.

The status of the EPS of the company stood at ₹(5.28) as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹(60.88), reduced by 91.32%.

₹*Mar 31, 2022Dec 31, 21Mar 31, 21
Total Income242.15327.57242.81
Total Expenses294.33302.98249.81
PBT /(Loss)(52.18)24.59(638.01)
Total Tax /(credit)(13.77)0.87(195.48)
PAT /(Loss)(38.41)23.71(44.25)
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹1,211.45 crore in the financial year ended on March 31, 2022 as against ₹1,253.18 crore for the financial year ended on Mar 31, 2021, decreased by 3.32%.

The company has posted a consolidated Net Profit of ₹46.47 crore in the financial year ended on March 31, 2022 as against Loss of ₹(311.52) crore for the financial year ended on March 31, 2021. The PAT recovered by 114.91%.

The status of the EPS of the company stood at ₹6.39 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹(42.86), recovered by 114.90%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income1,211.451,253.18
Total Expenses1161.661101.82
PBT /(Loss)48.43147.27
Total Tax /(credit)1.96(170.90)
PAT /(Loss)46.47(311.52)
*figures are in Crores
Market Times

(III) Key Highlights about the Performance :

  • The quarter continued to experience lower demand in all categories as inflation ruled high. Also, very significant input cost increases due to supply chain disruptions and overall inflationary pressures impacted margins severely. Price increases taken to offset this resulted in market resistance.
  • The flashlights category continued to suffer on account of dumped imports from China.
  • The full year was adversely impacted due to the above – particularly during the last two quarters. The turnover during the quarter and the year was lower by 12% and 3% respectively, while gross margin percentage came down by 7% and 5% respectively
  • The quarter and the year were also impacted due to one-time provisioning done as a measure of prudence, for certain disputed receivables & inventories, and on account of restructuring costs, for a total amount of ₹27.0 crores and additional communication and consultation costs of Rs.18.0 crores as against the comparable quarter last year
  • Operating Income fell by 3% in FY22-21, and 12% YoY
  • Operating EBIDTA lost by 1875 YoY, and 46% in FY22-FY21

Several measures have been initiated to make a quick recovery,

  • De-bottlenecking legacy inefficiencies in the organization structure.
  • Onboarding of Bain & Company for advice on improving operational efficiencies & strategy.
  • Initiation of more effective consumer communication.
  • Activation of cost rationalization initiatives to offset some of the inflationary impact.
  • Triggering actions to overcome disruptions in supply chain.
  • With these efforts, the Company is expected to return to a higher level of profitability in 2022-23

The stock last hit in BSE,

  • Intraday High of ₹ 322.75
  • Intraday low of ₹ 318.30