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Journalism of Courage
CALCUTTA, June 17: Eveready Industries India Ltd on Wednesday reported a 227 per cent increase in net profit to Rs 45.03 crore for 1997-98. Its net profit for 1996-97 was Rs 13.78 crore. The board of directors recommended a final dividend of Rs 4 per share, up from the Rs 3 for the previous fiscal.
Eveready, a Williamson Magor group company, manufactures and markets the Eveready brand of dry batteries & flashlights, bulk tea and Tez & Premium Gold brands of packet tea.
The company’s sales rose by 20 per cent from Rs 635.06 crore to Rs 759.77 crore and profit before tax rose by 98 per cent from Rs 28.78 crore to Rs 57.03 crore. It made an operating profit of Rs 109.83 crore, which is a 35.64 per cent increase from Rs 80.97 crore in 1996-97. Earnings per share improved from Rs 3.81 to Rs 12.44. Exports too rose by 39 per cent to Rs 64.28 crore.
The company attributed the jump in net profit to a rise in tea prices and good sales by its battery division in the past fiscal. Sales of its packet teas grew by100 per cent over the previous fiscal and the Tez and Premium Gold brands were launched in five more states in 1997-98. These brands of packet tea were launched in only three states in 1996-97.
An Eveready release said that despite a slowdown in the dry battery market, it sold 760 million pieces, the highest ever by the company.
The release said, "During the year, Eveready acquired two tea estates in the Dooars, viz. Mathura & Bhatpara, which will significantly improve growth in tea production. Commercial production at the battery plant being set up at Noida will commence shortly. The total outlay for capital expenditure for the year was Rs 84.92 crore."
Eveready’s joint venture with EBC (India) Company Ltd, a wholly-owned subsidiary of Ralston Purina Overseas Battery Company Inc of USA, started operations in 1997-98.
