InvestorQ : Why did Eveready see a sharp jump in profits in the tough Jun-20 quarter?
Crowny Pinto made post

Why did Eveready see a sharp jump in profits in the tough Jun-20 quarter?

Answer
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diksha shah answered.
1 month ago


You are absolutely right. In fact, Eveready Industries reported 3-fold jump in net profits for Jun-20 quarter as profits jumped from around Rs.7 crore to Rs.24.98 crore on a YOY basis. Eveready got a major boost from improved gross profit margins and lower cost of operations.

This is notwithstanding the fact that the total revenues for the quarter were sharply lower by 20.46% at Rs.331.23 crore on account of the COVID related lockdown. The operational performance improvement was evident in a 60% surge in the EBIDTA.

The boost to the profits largely came from lower manpower cost and lower selling and promotional expenses. In addition, the discontinuance of packed tea business helped in improving margins and even the locked up working capital was released.