Eureka Forbes Ltd
BSE:543482
Eureka Forbes Ltd
Eureka Forbes Ltd. has woven itself into the fabric of urban Indian households, becoming synonymous with water and air purification. Founded as a joint venture between Forbes & Company Ltd and Electrolux, Eureka Forbes embarked on its journey in 1982 with the introduction of Aquaguard, a product that would revolutionize the way Indians thought about clean water. The company's direct sales strategy, where they reached out to potential customers at their doorsteps, played a pivotal role in establishing trust and awareness across varied demographics. This direct engagement, coupled with a deep understanding of local water problems, has helped Eureka Forbes innovate and tailor their products to meet the specific needs of Indian consumers.
A core strength of the business lies in its ability to continuously adapt and diversify its offerings. While water purifiers like Aquaguard and Dr. Aquaguard remain flagship products, Eureka Forbes has methodically expanded its portfolio to include products like vacuum cleaners, air purifiers, security solutions, and recently, health and hygiene products. They have also embraced e-commerce, amplifying their reach beyond physical boundaries. This multi-channel strategy ensures a steady revenue stream, garnered from product sales, maintenance contracts, and customer service offerings. By maintaining a robust after-sales service network, Eureka Forbes not only enhances customer satisfaction but also secures recurring income, establishing a sustainable business model in an ever-evolving market landscape.
Eureka Forbes Ltd. has woven itself into the fabric of urban Indian households, becoming synonymous with water and air purification. Founded as a joint venture between Forbes & Company Ltd and Electrolux, Eureka Forbes embarked on its journey in 1982 with the introduction of Aquaguard, a product that would revolutionize the way Indians thought about clean water. The company's direct sales strategy, where they reached out to potential customers at their doorsteps, played a pivotal role in establishing trust and awareness across varied demographics. This direct engagement, coupled with a deep understanding of local water problems, has helped Eureka Forbes innovate and tailor their products to meet the specific needs of Indian consumers.
A core strength of the business lies in its ability to continuously adapt and diversify its offerings. While water purifiers like Aquaguard and Dr. Aquaguard remain flagship products, Eureka Forbes has methodically expanded its portfolio to include products like vacuum cleaners, air purifiers, security solutions, and recently, health and hygiene products. They have also embraced e-commerce, amplifying their reach beyond physical boundaries. This multi-channel strategy ensures a steady revenue stream, garnered from product sales, maintenance contracts, and customer service offerings. By maintaining a robust after-sales service network, Eureka Forbes not only enhances customer satisfaction but also secures recurring income, establishing a sustainable business model in an ever-evolving market landscape.
Revenue Growth: Q3 revenue rose 8% year-on-year to INR 645.4 crores despite a challenging macro environment and post-festive slowdown.
Margin Expansion: Adjusted EBITDA margin improved by 57 bps YoY to 11.3%, and gross margin jumped 331 bps YoY to 60.8%.
Channel Impact: Elevated trade inventories and weaker e-commerce sales, especially in water purifiers, weighed on Q3 growth, but management views this as a one-off issue.
Emerging Categories: Robotics, air purifiers (3x growth in Q3), and water softeners all delivered robust growth, diversifying the business beyond water purifiers.
Service Momentum: AMC bookings achieved a third consecutive quarter of double-digit growth, driven by service enhancements and filter initiatives.
FY Guidance Reaffirmed: Management expects Q4 growth to exceed YTD growth of 11.1% and remains committed to the long-term target of doubling revenue and tripling EBITDA by FY '30.
Increased Investments: Ad and sales promotion spend up 23% YoY in Q3, with a focus on driving category awareness and brand leadership.
