Eveready Industries Q1 FY25 Earnings Conference Call Summary
Submission Details
• Date of Call: August 5, 2024
• Transcript Submission: August 9, 2024
• Recipients: Major Indian stock exchanges (Calcutta Stock Exchange, BSE, NSE)
• Accessibility: Available on the company's investor relations website
• Moderated by: Nishid Solanki from CDR India
Key Management Insights
• Presenters: Suvamoy Saha (Managing Director), Bibek Agarwala (CFO)
• Forward-Looking Statements: Standard disclaimer provided
Financial Performance
• Revenue Decline: Compared to previous year due to high base effect
• Growth Momentum: Notable in alkaline battery segment (67% increase in value)
• Profitability:
• EBITDA increased by 14.2%
• PAT increased by 18.5%
• Cost Initiatives: Contributed to improved profitability
Strategic Initiatives
• Product Modernization: Enhancing offerings and brand engagement
• Distribution Revamp: Focus on diverse channels including e-commerce
• Sustainability and Innovation: Emphasis on eco-friendly products
• Leadership Onboarding: Senior leaders to drive growth
Segment Performance
• Battery Segment:
• Holds over 53% market share
• Alkaline batteries projected for growth
• Flashlight Category: Signs of recovery noted
• LED Lighting: Volume growth despite revenue challenges
Future Outlook
• Investment Plans: Rs. 180 crore for new alkaline plant
• Sales Traction: Positive expectations for the second half of the year
Market Insights
• Cost Advantage: Local production of alkaline batteries has a 10% cost advantage
• Market Share: Alkaline batteries currently at 10% of the market
• Consumer Preference: Shift towards alkaline batteries for longevity
Challenges and Concerns
• Rechargeable Battery Market: Stagnant growth noted
• Potential Cannibalization: Concerns regarding carbon-zinc revenue as focus shifts to alkaline
• Revenue Targets: Ambitious goals amidst market challenges
Operational Updates
• Production Capacity: Current focus on carbon zinc batteries
• Debt Status: Approximately Rs. 260 crore with an 8.7% cost of funds
• Ongoing Arbitration: With KKR, no asset sales until resolution
Additional Discussions
• Direct Retail Sales: Clarified reliance on distributors for B2C sales
• Unit Economics: Investment in alkaline driven by consumer trends, with a payback period of 5-6 years
• Competitive Landscape: Duracell identified as market leader in alkaline batteries
Conclusion
• Future Guidance: Aiming for double-digit growth across segments
• Production Plans: Alkaline battery manufacturing expected to start within a year
• Closing Remarks: Encouragement for further inquiries through Investor Relations team

Eveready Industries Q4 FY24 Earnings Conference Call Summary
Call Details
• Date: May 6, 2024
• Event: Q4 FY24 Earnings Conference Call
• Participants:
• Managing Director: Suvamoy Saha
• CFO: Bibek Agarwala
• Moderator: Nishid Solanki (CDR India)
• Availability: Transcript on investor relations website
Financial Performance Highlights
• FY24 Growth:
• EBITDA: +28%
• PAT: +232%
• Revenue: Stagnant due to weak rural demand and price deflation
• Future Outlook:
• Anticipated recovery in rural demand
• High-single-digit growth expected
Revenue Breakdown
• Categories:
• Batteries: 64.6% of revenue
• Flashlights: 12.2%
• Lighting: 23.2%
• Total Revenue: Approximately INR 1,340 crore
• Battery Performance:
• Carbon Zinc: -3% volume growth
• Alkaline: +71% growth, +135% in Q4
Strategic Initiatives
• Brand Communication: Enhanced advertising efforts
• Distribution Channels: Modernization and expansion
• Talent Pool: Expansion to support growth
Market Challenges
• Weak Rural Demand: Impacting revenue growth
• Value Erosion: Noted in the lighting market
• Competition: Growing presence of e-commerce and unregulated players
Capacity and Production Plans
• Current Capacity: Sufficient for carbon zinc and flashlights
• Alkaline Battery Production: Considering installation by year-end
• Asset Utilization: Approximately 80%
Margin and Cost Management
• EBITDA Margins:
• Batteries: ~15.5%
• Flashlights: 9%
• Lighting: Near breakeven
• Raw Material Costs: Strategies in place to manage rising prices
Growth Aspirations
• Future Projections:
• Batteries: 5% growth
• Flashlights: 10-12% growth
• Lighting: 20% growth
• Revenue Target for FY27: INR 1,800 crore
Conclusion
• Management's Commitment: Ongoing communication with investors
• Next Steps: Focus on resolving Route-to-Market issues and stabilizing growth
Additional Notes
• Dividend Declaration: Positive outlook for wealth creation
• Tax Rate: Between 16% to 18% due to MAT benefits
• Arbitration Update: Zero liability position maintained by Eveready
Closing Remarks
• Suvamoy Saha thanked participants and encouraged further inquiries, emphasizing commitment to quarterly updates.

Eveready Industries Q3 FY24 Earnings Conference Call Summary
Submission Details
• Date of submission: February 12, 2024
• Call date: February 7, 2024
• Submitted to: Calcutta Stock Exchange, National Stock Exchange of India, SSE Limited
• Transcript available on investor relations website
Key Participants
• Moderator: Nishid Solanki (CDR India)
• Senior Management: Suvamoy Saha (Managing Director), Bibek Agarwal (CFO)
Company Focus Areas
• Brand Visibility: Emphasis on enhancing brand presence.
• Distribution Channels: Revamped route-to-market strategy, consolidating distributors.
• Human Resources: Investment in workforce development.
Financial Performance
• Market Challenges: Decline in consumer demand, especially in rural areas.
• Market Share: Strong position in batteries; growth in lighting category.
• EBITDA Performance: Solid results supported by favorable raw material costs.
• Revenue Figures:
• Batteries: Rs. 675 crore (16% margin)
• Flashlights: Rs. 133 crore (9% margin)
• Lighting: Rs. 245 crore (-2% margin)
Growth Outlook
• Anticipation of growth revival as market conditions improve.
• Potential for high-single-digit growth in Q4 FY24.
Route-to-Market Strategy
• Reduction of distributors from over 4,000 to about 1,000.
• Sales distribution balanced between metro and smaller towns.
• Full consolidation may take 1-2 more quarters.
Advertising and Promotion (A&P)
• A&P spending: 12% of sales for the current quarter (up from 8% last year).
• Year-to-date A&P spending: 10% (up from 6% last year).
Market Recovery and Future Initiatives
• Some recovery expected in the upcoming quarter.
• Focus on maximizing current categories before considering expansion.
Flashlight Market Insights
• Significant decline in battery-operated flashlights (20% de-growth).
• Anticipated growth in rechargeable segment (50% growth).
Institutional Supply and Market Reach
• Current supply to institutions, including defense services, is minimal but with plans for improvement.
• Consideration of re-entering adjacent product categories.
Product Visibility and Distribution
• 53% market share in batteries; 2% in lighting products.
• Recent launch of revamped alkaline battery to improve visibility.
Conclusion
• Saha expressed gratitude for insights shared during the call.
• Encouraged further inquiries through the Investor Relations team.

Eveready Industries Q2 FY24 Earnings Conference Call Summary
Call Overview
• Date: November 8, 2023
• Transcript available on investor relations website
• Key executives: Suvamoy Saha (Managing Director), Bibek Agarwala (CFO)
• Moderator: Siddharth Rangnekar (CDR India)
Company Performance
• Segments: Dry cell batteries, flashlights, LED lighting
• Advertising: Increased spending for brand engagement; new logo and tagline
• Revenue Growth: 2.4%, below target due to distribution infrastructure revamp
• Profitability: EBITDA margin of 12.7%, PAT of Rs. 25.5 crore (74% YoY growth)
Product Insights
• Ultima Pro Batteries: Strong volume growth
• Flashlights: Flat revenue due to competition and rural market challenges
• LED Lighting: Grew by 8.4% despite market decline; targeted to increase revenue share from 22% to 35%-40% in 3-4 years
Management and Investor Focus
• Promoter Representation: Confirmed presence on board, no management role
• Battery Business Growth: Mid-single-digit growth from pricing and volume increases
• Arbitration Case: Ongoing with KKR, expected conclusion in early 2024
Financial Performance
• Profit Growth: Driven by lower raw material costs and absence of one-time charges
• Intangible Assets: Related to ongoing software implementations (SAP, Salesforce)
• Net Cash Generation: Increased due to higher profits and improved working capital
Operational Insights
• Margin Targets: Mid-teen operating margins aimed
• Capital Expenditures: Higher due to technology investments
• Route to Market Changes: Ongoing adjustments post-execution in March
Challenges and Future Outlook
• Operational Margins: Concerns for Q4 seasonality, but optimism for double-digit margins
• Distributor Count Reduction: From 5,000 to 1,000 to improve efficiency, causing transitional challenges
• Advertising Spend: Current at 12% of revenue, expected to normalize to 10%
• Future Growth Aspirations: Aim for double-digit growth in the next financial year
Debt Management
• Debt Reduction: From Rs. 367 crore to Rs. 314 crore; goal to be debt-free in 2-3 years
Conclusion
• Call concluded with thanks and encouragement for further inquiries through investor relations.

Eveready Industries Q1 FY24 Earnings Conference Call Summary
Company Performance
• Date of Call: August 14, 2023
• Key Management: Suvamoy Saha (Managing Director), Bibek Agarwala (CFO)
• Revenue Growth: 8.4% across all segments (batteries, flashlights, LED lighting)
• Market Share: Maintained 54% in consumer battery market
• Lighting Segment Growth: 20% revenue growth despite market challenges
• EBITDA Margin: 12%
• PAT Increase: 13.8%
• Future Outlook: Confidence in returning to double-digit growth
Revenue Breakdown
• Overall Revenue Growth: 8.3%
• Batteries: 5.6%
• Flashlights: 5%
• Lighting: 20%
• Advertising Expenses: INR 28 crore (7.5% of total revenue)
Market Insights
• Alkaline Battery Market: Focus on increasing share in premium segment
• Gross Margin Expectations: Improvement anticipated due to stabilizing raw material costs
• Profit Contribution: Batteries (85% of profits), Lighting (breakeven)
Growth Drivers
• Lighting Segment: Growth driven by product portfolio expansion and increased distribution touchpoints (over 50,000)
• Flashlight Growth: Expected return to double-digit growth
Financial Strategy
• Route-to-Market: Strategy to improve efficiency without reducing distributors
• Consulting Costs: INR 25-26 crore spent with Bain Capital over 18 months
• Net Debt: INR 340 crore, with a weighted average cost of funds at 8.5%
Employee Costs and Litigation
• Employee Costs: Currently around 10% of revenue, expected to decrease to 9-10%
• Ongoing Litigation: Affecting equity raising; arbitration expected to conclude in early 2024
Future Projections
• Growth Outlook: High single-digit growth for top line, double-digit EBITDA margins
• Battery Segment: Flat volume growth, 6% revenue growth due to price increases
• Flashlight Segment: Anticipated double-digit growth despite slow start
Conclusion
• Management committed to transparency and thanked participants for their engagement.

Eveready Industries Q3 FY23 Earnings Conference Call Summary
Date and Participants
• Date of Call: February 9, 2023
• Key Participants:
• Suvamoy Saha (Managing Director)
• Senior management team
Financial Performance
• Revenue Growth:
• 5.3% increase, reaching Rs. 330.4 crore
• Growth driven by premiumization and effective marketing
• Market Share:
• Increased to 54.5% in the battery segment
• Segment Performance:
• Batteries: Rs. 230 crore
• Flashlights: Rs. 35 crore
• Lighting: Rs. 70 crore
• EBITDA Margin:
• Approximately 10.5%, expected to be slightly below 10% due to investments
Strategic Initiatives
• Distribution Modernization:
• Focus on improving efficiency within existing network
• Product Expansion:
• Targeting growth in rechargeable flashlights and lighting
• Revenue Doubling Goal:
• Aim to double revenue over the next four years based on FY '22 figures
Challenges and Responses
• Increased Expenses:
• Noted rise in consulting fees and advertising (around Rs. 20 crore)
• Impact of KKR Ruling:
• Company classified as a related party, affecting capital-raising plans
• No immediate crisis; sufficient cash flow for operations
Market Outlook
• Battery Market:
• 9% growth despite overall market stagnation
• Optimism for future growth as market conditions improve
• Lighting Segment:
• Revamping product portfolio for increased market presence
• Targeting significant growth in the next 2-2.5 years
Raw Material and Cost Management
• Raw Material Basket:
• Includes zinc, manganese dioxide, and other dollar-denominated materials
• Employee Benefit Expenses:
• Currently at 10.5% of sales, with a target to reduce below 10% next year
• FOREX Impact:
• Acknowledged need for transparency in reporting FOREX impacts
Conclusion
• Future Projections:
• Sustainable EBITDA margin expected in mid-teen levels across all segments
• Growth Opportunities:
• Positive outlook on battery consumption trends and lighting segment growth potential