Eveready Industries -
Q4 FY 24 results and concall highlights -
Q4 financial outcomes -
Sales - 280 vs 286 cr
EBITDA - 25 vs 1 cr ( margins @ 9 vs 0.3 pc, QoQ margins improved from 8 to 9 pc )
PAT - 8 vs (-) 14 cr
FY 24 financial outcomes -
Sales - 1314 vs 1328 cr
EBITDA - 140 vs 110 cr ( margins @ 11 vs 8 pc )
PAT - 67 vs 28 cr
Flattish topline - because of continued weakness in the rural demand and pricing de-growth in LED lighting mkt
Company continues to be the Mkt Leader in Zinc-Carbon batteries with 53 pc Mkt share. In alkaline batteries, company has been a late entrant with a current Mkt share of 10 pc
Company’s focus in the lighting business is on rural and general trade focus
Advertisement and Promotion spends @ 10.2 pc of sales in FY 24
Alkaline batteries and rechargeable flash lights witnessing strong growth. Traditional flashlights continue to witness a volume decline
LED Lighting industry saw price led de-growth in FY 24
Guiding a high single digit topline growth for FY 25 with continued margin expansion
Breakup of revenues -
Batteries ( both alkaline + Zinc ) - 64 pc ( 94 pc of batteries business comes from Zinc-Carbon segment, Alkaline segment is only 6 pc of the business currently )
Flashlights - 13 pc ( Battery operated vs Rechargeable split @ 60:40 )
LED lighting - 23 pc
Segment wise volume growth in FY 24 -
Zinc - Carbon batteries - (-) 3 pc
Alkaline batteries - 71 pc
LED lighting - 20 pc plus ( however, there was a steep price decline )
Company feels that the worst of pricing declines in the LED mkt may over now
Company is expecting new GoI mandated standards for rechargeable batteries to be out very soon. This should help ward off the non-complaint unorganised and Chinese competition
Aspire to grow the lighting business by 20 pc
( price + volume ) in FY 25. Also expect LED lighting business to break even in FY 25. Company
Company estimates, flashlights mkt to be @ 1200 cr or so. Company is 20 pc of the Mkt. Company estimates that 70 pc of this mkt is still unorganised
If the growth in Alkaline batteries sustains, company may contemplate setting up its own manufacturing facility. Company already makes Zinc batteries, flashlights in-house
Zinc-Carbon battery is more of a rural product - hence witnessing a demand slowdown
Aim to double their Alkaline batteries business in FY 25 ( after a 70 pc growth in FY 24 ). Company’s base in alkaline batteries is still low
Current EBITDA margins for batteries business @ 15 pc, Flashlights @ 9 pc, LED lighting is slightly negative ( likely to break even in FY 25 )
Once the company starts in-house manufacturing of Alkaline batteries, the EBITDA margins of the Alkaline segment are likely to go up by 8-10 pc !!!
Intend to launch another product category in FY 26-27
LED lighting business currently has a gross margin of 35 pc
Disc: holding, biased, not SEBI registered
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