EVEREADY INDUSTRIES Announces Quarterly Results (3QFY21); Net Profit Down 44.3%

Thu, 11 Feb

EVEREADY INDUSTRIES has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

EVEREADY INDUSTRIES Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	3,174	3,726	3,403	-8.7%	7.2%
Other income	Rs m	105	109	114	4.0%	8.1%
Turnover	Rs m	3,280	3,836	3,517	-8.3%	7.2%
Expenses	Rs m	2,813	2,969	2,719	-8.4%	-3.3%
Gross profit	Rs m	1,257	758	684	-9.7%	-45.6%
Depreciation	Rs m	70	70	68	-3.8%	-3.3%
Interest	Rs m	181	145	119	-18.0%	-34.4%
Profit before tax	Rs m	1,111	652	611	-6.2%	-45.0%
Tax	Rs m	205	72	107	49.2%	-47.8%
Profit after tax	Rs m	906	580	504	-13.1%	-44.3%
Gross profit margin	%	39.6	20.3	20.1
Effective tax rate	%	18.5	11.0	17.5
Net profit margin	%	27.6	15.1	14.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 7.2% on a year-on-year (YoY) basis. The expenses were down by 3.3% YoY during the same period.
• The company's operating profit declined by 45.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 20.1% in 3QFY21 as against 39.6% in 3QFY20.
• Depreciation charges declined by 3.3% and finance costs declined by 34.4% YoY, respectively.
• Other income increased by 8.1% YoY during the quarter.
• Net profit for the quarter declined by 44.3% YoY. Net profit margins during the quarter declined from 27.6% in 3QFY20 to 14.3% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 8.7% on a quarter-on-quarter (QoQ) basis. The expenses were down by 8.4% QoQ during the same period.
• The company's operating profit declined by 9.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 20.1% in 3QFY21 as against 20.3% in 2QFY20.
• Net profit for the quarter declined by 13.1% QoQ, while net profit margins declined from 15.1% in 2QFY20 to 14.3% in 3QFY21.

To see how EVEREADY INDUSTRIES has performed over the last eight quarters,please visit here.

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EVEREADY INDUSTRIES Share Price Performance

Over the last one year, EVEREADY INDUSTRIES share price has moved up from Rs 63.1 to Rs 229.5, registering a Gain of Rs 166.4 or around 263.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 33,119.4 (down 0.6%). Over the last one year it has moved up from 26,812.2 to 33,119.4, a gain of 6,307 points (up 23.5%).

Overall, the S&P BSE SENSEX is up 25.8% over the year.

Current Valuations

At the current price of Rs 229.5, the price to earnings (P/E) ratio of EVEREADY INDUSTRIES stands at 8.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.0 times.