Dry cell battery maker Eveready Industries India Ltd reported a net loss of 2,442 crore for the quarter ending March 31. The company had reported a net profit of ₹ 64 crore in the corresponding period of the previous fiscal year.
The losses were mainly due to an exceptional item, which amounted to a depreciation of 630 crore.
The exceptional items include the provision for outstanding intercompany deposits and receivables, the write-off of accrued interest on these deposits and receivables and the write-off of the principal advance outstanding as of March 31, 2021, the company said in a statement.
“The above adjustments are non-monetary items and have no impact on the day-to-day business or operations of the company,” Eveready said.
During the quarter under review, the company announced a 22% increase in operating profit, year on year, to ₹ 273 crore. Operating profit for the period last year was 224 crore. Gross margin and EBITDA increased by 26% and 43% respectively.
For fiscal 21, Eveready recorded a 3% increase in operating profit to 1,249 crore yen, while it recorded a net loss of 380 crore yen.
For the month of May, the company initiated a 4-5% price hike in the battery segment to counter a “sharp rise in raw material costs”. A similar price hike was also initiated in the flashlight segment. “These actions should mitigate any negative impact on margins,” he said, adding that the company was seeing a steady increase in demand for batteries and flashlights and that there had been a marked decrease in prices. Chinese offers dumped. There has also been an improvement in the lighting segment. The vertical of small household appliances has not yet reached its scale.
The pandemic and the disruption that followed also delayed restructuring at the developer group level, the company added in its statement. However, “every effort” is made to address the issue of “unpaid liabilities”.