Consumer Electronics company Eureka Forbes announced Q3FY24 results: Financial Performance Highlights Revenue: Eureka Forbes reported a YoY revenue increase of 14.1% in Q3FY24, amounting to Rs 538.6 crore, with the continuing business posting a 16.8% growth. Adjusted EBITDA: The adjusted EBITDA showed a significant rise of 28.6% compared to Q3FY23, reaching Rs 52.9 crore. The adjusted EBITDA margin also improved by 111 basis points, indicating a more profitable quarter. Adjusted PBT: Adjusted Profit Before Tax (PBT) saw an uptick of 45.6% YoY, arriving at Rs 40.9 crore, up from Rs 28.1 crore in Q3FY23. Profit After Tax (PAT): The PAT skyrocketed by 131.3% YoY, settling at Rs 22.7 crore compared to Rs 9.8 crore in the same quarter of the previous fiscal year. Adjusted PAT: When adjusted for pre-ESOP expenses, PAT increased by an impressive 213.5% YoY to Rs 30.7 crore. Business Operations Highlights The revenue growth was broad-based across both product categories (water purifiers and vacuum cleaners) and service business. The quarter also marked the third consecutive period of volume growth in the mentioned categories, showcasing sustained demand and sales strength. New product launches across all categories were highlighted, including Slimtech Glass UV Water Purifiers, Zero Bend Vacuum Cleaners, Forbes Buddy Pet Grooming Kit, and Surround 360 Air Purifiers. Balance Sheet and Credit Rating Highlights The company successfully transformed from a net debt position of Rs 122 crore in Q3FY23 to a net cash surplus of Rs 60 crore. Eureka Forbes Limited received an upgrade in its credit rating from CARE A Stable to CARE A+ Stable, reflecting improved financial health and creditworthiness. Commenting on the Q3FY24 performance, Pratik Pota, MD, and CEO, Eureka Forbes said, “Q3 witnessed a step up in our growth and revenue grew 14.1% with continuing businesses growing at 16.8%. Growth was volume-led and was broad-based across product categories and service business. Within water purifiers, we witnessed strong growth in both Economy segment and Value Added segments while growth in vacuum cleaners was led by the Robotics range. EBITDA margins improved year on year to 9.8% and we had a cash surplus of Rs 60 crore vs a net debt of Rs 122 crore last year. Our transformation initiatives continued to gain momentum in the quarter. In Q3, this was most visible in our product innovations and product launches were made in all the 3 categories of water purifiers, vacuum cleaners and air purifiers. Looking ahead, we are confident that our transformation strategy will deliver results and lead to sustained, profitable growth in the future.” Result PDF
Consumer electronics company Eureka Forbes announced Q1FY24 results: Revenue from operations stood at Rs 505.3 crore (-3.8% YoY). This represented a sequential improvement in the trajectory of the business. Adj. EBITDA stood at Rs 49.6 crore (+15.5% YoY). Adj. EBITDA margin improved 164 bps YoY and 49 bps QoQ to 9.8%. Adjusted EBITDA is pre-ESOP charges. Adj. PBT stood at Rs 34.8 crore (+42.6% YoY). Profit after tax stood at Rs 22.1 crore (+23.8% YoY). Adjusted PBT is pre-ESOP charges. During Q1FY24, the company’s net debt stood at Rs 32 crore, a reduction of 85% YoY. Commenting on the Q1FY24 performance, Pratik Pota, MD and CEO, Eureka Forbes said, “We made encouraging progress against our key strategic priorities in Q1FY24. Our recent efforts in growing the category and driving volumes are beginning to bear fruit with overall volume growth in Electric Water Purifiers and Vacuum Cleaners during the quarter. Execution of specific transformation initiatives helped improve our Adj. EBITDA margin to 9.8%, up by 164 bps YoY. This combined with an 85% YoY reduction in our net debt has fundamentally improved the financial health of the business. We also rolled out an industry-first, company-wide ESOP program that grants stock options to every single manager in the company; we believe this will drive collaboration and shared ownership toward the transformation. Looking ahead, we see the key transformation levers beginning to fall in place and are confident of driving sustained and profitable growth in the quarters ahead.” Result PDF
Consumer Electronics company Eureka Forbes announced Q4FY23 & FY23 results: Standalone Q4FY23: Revenue from operations stood at Rs 508.1 crore (-8.0% YoY) EBITDA stood at Rs 47.4 crore (+35.6% YoY). EBITDA margin improved by 300 bps to 9.3% PBT before exceptional items stood at Rs 35.0 crore (+120.9% YoY). Reported PBT was Rs 25.8 crore, up 63.3% YoY Profit After Tax stood at Rs 16.3 crore (+98.0% YoY) During the quarter, Eureka Forbes launched a new campaign ‘Nal se kapda hatega toh Sar se kapda hatega’ targeted at non-users of the category. Standalone FY23: Revenue from operations stood at Rs 2,080.4 crore, (+2.2% YoY) EBITDA stood at Rs 131.7 crore (+20.0% YoY). EBITDA margin improved by 94 bps to 6.3% PBT before exceptional items stood at Rs 67.0 crore (+19.5% YoY). Reported PBT stood at Rs 26.9 crore (-41.0%) Profit After Tax stood at Rs 17.1 crore (-35.0%) Commenting on the Q4FY23 performance, Pratik Pota, MD, and CEO, Eureka Forbes said, “Faced with an ongoing soft demand environment, we continued to move ahead on our strategic priorities in Q4FY23 and on improving the financial health of the business. We launched a new advertising campaign in Q4 targeted at non-users of the category, and we also introduced several key innovations in the market. Execution of specific transformation initiatives helped improve our EBITDA margin to 9.3%, up by 300 bps YoY and by 61 bps sequentially. This combined with a 72% YoY reduction in our net debt will allow us the headroom to invest for growth. Looking ahead to the future, we are confident of driving sustained performance on the back of differentiated innovations, an elevated customer experience & a more efficient business model.” Result PDF
Consumer Electronics firm Eureka Forbes announced Q3FY23 results: Q3FY23 & 9MFY23: For Q3FY23, revenue from operations stood at Rs 472 crore, down 8.9% on a YoY basis For Q3FY23, EBITDA stood at Rs 41.2 crore as against Rs (2.7) crore for Q3FY22. The benefits of improved productivity and cost optimization measures led to margin expansion of 924 bps YoY For Q3FY23, profit after tax stood at Rs 9.8 crore as against a loss after tax of Rs 9.7 crore in Q3FY22 As per the standalone results for 9MFY23, revenue from operations stood at Rs 1,572.3 crore, up 6.0% on a YoY basis During the quarter, Eureka Forbes launched new products in the premium segment for vacuum cleaners & water purifier categories. Commenting on the Q3FY23 performance, Mr. Pratik Pota, MD, and CEO, Eureka Forbes Limited said, “Q3 witnessed a softening of demand owing largely to inflationary pressures and a pullback by consumers on category spending. In this challenging environment, our focus remained on executing our key strategic priorities and driving efficiencies in the business model. We executed a set of specific cost initiatives that helped improve our operating margins by 924 bps YoY. While we are conscious that more work remains to be done here, the early margin improvement will allow us the headroom to invest for growth. We are in the early phase of an exciting transformation agenda. Looking ahead, we are confident that our strong brand and innovation capabilities, our omni-channel GTM and our nation-wide service network are foundational strengths that will help us drive sustained, profitable growth and create long term value for our shareholders.” Result PDF
Consumer electronics firm Eureka Forbes announced Q2FY23 results: Standalone Q2FY23: As per the standalone results for Q2 FY23, revenue from operations at Rs 575.1 crore grew 9.5% on a sequential basis and declined 2.8% on a YoY basis. Revenues for the period April-Sept 22 (H1FY23) grew YoY at 13.9%. The company reported a loss of Rs 26.8 crore due to one-off charges and rise in expenses. Pratik Pota, MD and CEO, Eureka Forbes Ltd, said, “In the backdrop of an inflationary environment, our revenues increased sequentially by 9.5% and declined 2.8% year-on-year. Results for the quarter were impacted by certain one-off charges arising from portfolio choices and other related actions." Result PDF