Business

Eveready net rises 12%; set for packet tea JV

Mr Partha Biswas, SBU Head- Batteries and Flashlights Business, Eveready Industries Ltd, at the launch of new range of batteries and Homelite, in Chennai

Mr Partha Biswas, SBU Head- Batteries and Flashlights Business, Eveready Industries Ltd, at the launch of new range of batteries and Homelite, in Chennai

Eveready Industries India Ltd. (EIIL), best known for its dry-cell batteries, posted a 12% increase in fourth-quarter net profit to ₹10.5 crore. Operating income rose 7% to ₹304.6 crore as healthy demand at the lighting and appliances business helped offset tepid sales of batteries and flashlights.

Sales at the mainstay segment remained subdued during the quarter, due to lower consumer offtake and destocking in trade channels post demonetisation.

The process for hiving off EIIL’s packet tea business into a joint venture with group company McLeod Russel India Ltd. was set rolling on Tuesday after the board decided to initiate talks with MRIL.

EIIL’s operating income rose 2% in 2016-17 to ₹1,355.2 crore, while net profit jumped 36% to ₹93.6 crore. The battery market was impacted by demonetisation as well as imports from a neighbouring country, the company said.

In February, EIIL’s board had approved a proposal to recast the unprofitable packet-tea business.


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Printable version | May 25, 2022 8:44:41 am | https://www.thehindu.com/business/eveready-net-rises-12-set-for-packet-tea-jv/article18660555.ece