Exide net surges 34%, top line grows to Rs 1135cr

Exide Industries Ltd today declared 34 per cent growth in its gross turnover and 17 per cent growth in net profit during the first quarter of the financial year 2007-08, compared to the corresponding quarter of the previous financial year.

The company’s Board met in the city on Thursday evening to adopt the financial results for the quarter April-June 2008. 

During the period under review, Exide Industries Ltd’s gross turnover grew to Rs 1135 crore (from Rs 848 crore during Q1 07-08) and profit after tax grew to Rs 82 crore (from Rs 70 crore during Q1 07-08).

Commenting on the performance, Managing Director and Chief Executive Officer, Mr T.V. Ramanathan, said, “profit growth was affected by the depreciation of the rupee vis-a-vis all major currencies. A depreciating rupee affects profitability since we import a sizeable part of our main raw material Lead. In view of the burgeoning inflation rates, we have to keep a very tight leash on costs over the next three quarters to keep the momentum of the first quarter going.”

If exchange gain / loss arising from Rupee appreciation / depreciation is excluded the growth in profit for the quarter is 40%.

With the automotive segment showing less than buoyant growth rates in some of  the segments, the company’s industrial battery business, particularly in telecom and power sectors continued to show robust growth.

The automotive segment is expected to see a lot of excitement in the near future with the planned launches of a slew of new car models by a number of manufacturers. Virtually all these new launches from the auto giants will be powered by Exide batteries, not to speak of the much awaited Nano from the Tata Motors stable half of which will also run on Exide batteries.

During the period under review the company acquired 51 per cent stake in Leadage Alloys India Ltd, a Lead smelting and refining unit located near Bangalore. This is expected to give the company better control over the business of recycling of used Lead acid storage batteries and consequently meet the requirements set forth by the government in its Battery Handling and Management Rules. Its own smelting unit will also help Exide combat the rising Lead prices more effectively.

Sourced From: Sampark Public Relations Pvt Ltd