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Eveready Industries India Ltd has recently announced its performance for the quarter ended March 31, 2024 and financial year ended FY24. Following are the key financial highlights:

Highlights from the Quarter (Q4FY24):

Eveready Industries India Ltd (EIIL) reported a flat quarterly net revenue of Rs. 280.9 cr for Q4FY24, marginally down 1.8% YoY and 7.9% on a QoQ basis. This is primarily attributed towards weak rural demand affecting offtakes of batteries and flashlights, and industry?wide price deflation in the lighting segment due to players passing on manufacturing efficiencies to the market.

EIIL reported an improved EBITDA of Rs.25.5 cr for the quarter vs Rs.1.0 cr for the same quarter in the previous year, and Rs.25.0 cr in the preceding quarter (up 2.0% QoQ). Due to favourable raw material pricing and cost conservation efforts, the company reported an EBITDA margin of 9.1% for the quarter, up 90 bps from the previous quarter. The company delivered a net profit of Rs.8.1 cr for Q4FY24 at a net margin of 2.9%.

On a full year basis, EIIL reported a robust growth of 27% and 232% in EBITDA and PAT respectively. The management has attributed this to their active initiatives to drive premiumisation and cost efficiencies. Following the launch of the new Eveready Ultima premium batteries, the company’s alkaline battery segment gradually expanded through the course of the year. The company’s traditional battery segment continues to hold 53% market share as on the end of the year.

Another key development was the company’s collaboration with Neeraj Chopra (Olympic Gold Medal in Javelin) as its new brand ambassador of Ultima. This is a strategic initiative by the company to gain traction among the youth especially, with the Olympic games expected to commence in July this year.

OUTLOOK AND VALUATION

Eveready Industries India Ltd posted a flat quarter in terms of revenue growth, however, EBITDA and PAT numbers grew significantly on a YoY basis. We expect FY26E revenue at Rs.1688.1 cr, EBITDA of Rs.255.1 cr at an EBITDA margin of 15.1% and PAT of Rs.147.7 cr. We estimate FY26E EPS at Rs.22.4, and assign a PE multiple of 22x, maintaining the target price of Rs.447 (upside ~34.7%) from the current market price of Rs.332. We maintain our BUY Rating for Eveready Industries Ltd over an investment horizon of 24-30 months.

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