Calcutta, July 30: Eveready Industries India’s (EIIL) first-quarter net profit zoomed to Rs 10.22 crore from Rs 39.68 lakh in the corresponding period of the previous year.
The profit spike — an eye-popping 2520 per cent — was achieved with the help of a steep fall in interest costs brought about by the firm’s debt restructuring.
That the growth has come from having to fork out less for debt-servicing is reflected in the profit before depreciation, interest and taxation (PBIDT). The PBDIT in the first quarter of 2003-04 at Rs 27.87 crore is lower than Rs 29.47 crore in the same period previous fiscal. The interest burden, at Rs 21.25 crore in the first quarter last fiscal, has slid to Rs 9.57 crore in April-June 2003.
Interest cost was computed after taking into account income through a net foreign exchange gain of Rs 7.78 crore on loan conversion. Net sales rose 2 per cent to Rs 184.24 crore from Rs 180.5 crore in the first quarter of last fiscal. Net sales of the FMCG division, including battery and packet tea, was Rs 151.50 crore against Rs 148.66 crore in the same time last year. Sales from the bulk tea division have gone up marginally to Rs 32.74 crore from Rs 31.84 crore.
The FMCG wing registered a profit (before tax and interest) of Rs 20.29 crore, while the bulk tea division has suffered a loss of Rs 35.74 lakh against a profit of Rs 74.17 lakh in the previous year.