India has recorded a 35.65 per cent drop in profit before tax (PBT) to Rs 20.79 crore for the quarter ended September 30, 2019, as compared to the same period last year. Net profit dropped 27 per cent to Rs 18.11 crore, as against the same period last year. The company is yet to move to a lower tax rate and is evaluating the same. Gross revenues were lower by 9 per cent to Rs 348.40 crore.
The company said the corresponding quarter of last year had a windfall credit of Rs 4.7 crore towards reversals for labour wage provisions of the closed Chennai manufacturing unit, which was not there in the current year. As a result, despite the superior performance in the battery and flashlights segments, the overall profitability of the company was inferior to that of the corresponding quarter of last year, Eveready said. Turnover was impacted on weak consumption demand, especially in the segments of lighting and appliances as also discontinuance of the packet tea segment. However, the core categories of battery and flashlights did not see a decline in growth.
The battery segment is expected to show better volume growth from subsequent quarters once full effect of implementation of the BIS standards comes into force.
Eveready said a promoter group level restructuring was underway to monetise assets to meet up the various liabilities of the companies, including the outstanding advances and any potential liability related to the guarantees/ post-dated cheques, due to the company.