Eveready Ind to focus on LED biz, net up at Rs 5.45 cr

Dry cell battery maker Eveready Industries India Ltd (EIIL) is planning to increase its focus on the LED lighting business.

According to Amritangshu Khaitan, Managing Director, EIIL expects the LED business to account for nearly 30 per cent of its turnover, or between Rs 700 crore to Rs 1,000 crore, over the next three years.

“Currently, LED accounts for just one per cent of our turnover. But it will be big in the coming days,” he told reporters. Over the next one year, EIIL will look to spend substantially on advertising and branding with prime focus of the brand campaigning being on the LED vertical.

Advertisement spends are expected to increase to nearly Rs 75 crore or around 5 per cent of the turnover this year.

Debt Free

Banking on its improved financials, the company is hoping to be debt-free over the next two years (FY-17) and repay the Rs 80 crore-odd term loan that it has.

Around Rs 25 crore of long and short term debt were repaid last fiscal, Khaitan said.

Financial Results

The company reported a 4.36 times rise in net profit to Rs 5.45 crore for the quarter ending March 31, 2015. It reported a net profit of Rs 1.25 crore for the corresponding quarter last fiscal.

Its net sales increased to Rs 275 crore; or a 7 per cent increase, over the Rs 257 crore it reported in the year-ago-period.

For the full year (FY-15), it reported a 250 per cent increase in net profit to Rs 49 crore. In FY-14 it reported a net profit of Rs 14 crore. Net sales for the full year increased by 11 per cent Y-o-Y to Rs 1,278 crore (Rs 1,153 crore).

“A price increase of around 20 per cent in FY-15 (in two tranches); along with reduction in interest costs has contributed towards the bottom-line improving,” Khaitan added.

The board has declared a dividend of 40 per cent or Rs 2 on each equity share having a face value of Rs 5 each for the full year.

The Eveready stock closed at Rs 270.80; up by 2.93 per cent, at the BSE on Monday.