Eveready Industries India Ltd.
Information Update
May 11, 2007
Attention is drawn to Important Notes on Page 6 of this Update.
1
Eveready Industries India Ltd.
1, Middleton Street
Kolkata 700 071
Information Update
This update covers the following –
1.
Financial Results for the year and quarter ended March 31, 2007
2.
Company Management’s understanding of future outlook
3.
Profile containing historical and basic information on the Company
* Only operating, i.e., excluding sale of real estate
Rs.Cr.
Rs.Cr.
%
Rs.Cr.
Rs.Cr.
%
Q4 06-07 Q4 05-06 Change
FY 06-07
FY 05-06 Change
Net Sales
162.18
170.50
(4.9)
772.52
732.81
5.4
PBDIT *
(3.67)
17.14
47.35
90.78
(47.8)
PBT *
(19.26)
2.21
(13.78)
22.87
Highlights of the quarter and year ended March 31, 2007
*
Input material costs continued to put pressure on battery & flashlights margins.
*
Pricing actions taken by the Company to mitigate the cost push, encountered stiff
consumer resistance from Q3. This phenomenon continued during Q4. This resulted
in volume drop during the quarter as well as for the whole year.
*
The volume drop was not unique to the Company, but held true for the entire market
for the relevant product categories. In fact, the market share for Eveready in batteries
had shown improvement as of March 2007 and stood at 46.4 per cent (AC Nielsen).
Eveready Industries India Ltd.
Information Update
May 11, 2007
Attention is drawn to Important Notes on Page 6 of this Update.
2
Review of operations
Dry Cell Batteries
As mentioned briefly above, cumulative price increase for the various battery types over the
last 24 months or so ranged between 20 per cent and 50 per cent. While it did not seem to
impact consumers initially, from Q3 06-07 it met with stiff consumer resistance and demand
started slowing down. Unfortunately, the price increases had to be persisted with due to the
continuing run-up in input costs.
India is known to be a price sensitive