The Telegraph
Saturday , July 26 , 2014
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Eveready strives to be free of debt

Amritanshu Khaitan in Calcutta on Friday. (PTI)

Calcutta, July 25: Eveready Industries India Ltd plans to be debt-free by 2016-17.

The company had closed 2013-14 with a debt of Rs 225.05 crore and hopes to repay around Rs 60 crore in this fiscal.

Managing director Amritanshu Khaitan said operational profitability would help the company to meet its target, and the sale of real estate assets would not be required.

A diverse product range and price hikes have put Eveready on a turnaround path. The company’s main agenda will be to grow at a compounded annual growth rate of 10-15 per cent for the next three years from its existing operations.

The company today reported a standalone net profit of Rs 10.60 crore for the quarter ended June, a jump of 157.09 per cent over Rs 4.12 crore in the year-ago period.

Total income from operations stood at Rs 323.57 crore against Rs 279.61 crore a year ago. Operating profit before tax stood at Rs 13.95 crore against Rs 1.54 crore.

“Eveready is onto a growth path in terms of turnover and profitability. This happened because of the price increases that the company took and the new products we have entered into. But in the long term, 2-3 down the line, the mainstay for Eveready will be to become one of the top five brands in the lighting category and generate significant turnover out of the electrical business. I think we are on track to do that. The biggest bottleneck has been distribution that we are working on,” Khaitan said.

He was speaking on the sidelines of the company’s AGM here today.

For 2011-12, Eveready’s debt stood at Rs 285.96 crore. It was pared to Rs 276.13 crore in 2012-13 and to Rs 225.05 crore in 2013-14.