Shares of Eureka Forbes Ltd rose 6% in early trade today after reporting strong fourth-quarter results. Eureka Forbes Ltd shares were trading 6.58% higher at Rs 427 at 10:29 am on the NSE.

Eureka Forbes Ltd reported its fourth quarter figures in a filing with the BSE on May 29, 2023. Consolidated quarterly, the company reported net sales of Rs 508.58 crore for March 2023, an increase of 35.92% from Rs 374.17 crore in March 2022. The company’s quarterly March 2023 net profit stood at Rs 20.59 crore, up 346.32% from Rs 4.61 crore in March 2022.

EBITDA for March 2023 stood at Rs 56.8 crore, an increase of 153.57% from Rs 22.4 crore in March 2022. Eureka Forbes’ earnings per share (EPS) to fall to Rs 1.06 in March 2023 from Rs 1.41 in March 2022.

The company’s operating income stood at Rs 2,080.4 crore (up 2.2% YoY) on a standalone basis. EBITDA was at Rs 131.7 crore (up 20% YoY). EBITDA margin improved 94 basis points to 6.3%. Profit before tax (PBT) before exceptional items was Rs 670 crore (+19.5% YoY). This compares with a reported PBT of Rs 26.9 crore (-41%) and profit after tax (PAT) of Rs 17.1 crore (-35%).

Commenting on the Q4FY23 results, Mr Pratik Pota, MD and CEO of Eureka Forbes Limited, said, “In the face of a persistently weak demand environment, we continued to advance our strategic focus in Q4FY23 and improved the financials of the company. The business. We launched a new advertising campaign targeting non-users in the category in the fourth quarter, and we also launched several key innovations in the market. Executing concrete transformational initiatives helped us move our EBITDA margin to improve to 9.3%, up 300 basis points year-over-year and 61 basis points sequentially.”

“This, combined with a 72% year-on-year reduction in net debt, will give us sufficient room to invest in growth. We are confident in differentiated innovation, improved customer experience and more efficient business models.”