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MOTORINDIA
l
February 2012
131
Exide remains the battery leader
Exide Industries Ltd. has
reported a net profit of Rs.
104 crores on a net turno-
ver of Rs. 1,250 crores for
the third quarter ended De-
cember 31, 2011.
For the first nine months of
the current financial year, the
company’s net turnover and net
profit were, Rs. 3,668 crores and
Rs. 319 crores respectively.
Commenting on the quarter’s
performance, the Managing Di-
rector and CEO, Mr. T.V. Ra-
manathan, said: “The financial
results for the third quarter of
the current financial year 2011-
12 mark a significant improve-
ment in the company’s fortunes
vis-a-vis
the second quarter. While
sales improved six per cent, operat-
ing margin improved by 560 basis
points as compared to the second
quarter of the current financial year.
Consequently the net profit for the
quarter is 104% higher sequentially,
even after absorbing an exchange
loss of Rs. 10.36 crores due to cur-
rency depreciation”.
Whilst the sales volume of
SBU-Automotive remains sub-
dued in both OEM and replace-
ment segments the volume
growth in two-wheeler batteries
was nearly 20 per cent during the
quarter under review.
During the quarter lead prices
in the international commodity
markets remained comparatively
soft. However, this advantage to
the company was more than ne-
gated by the steep rupee depre-
ciation. Nevertheless, with cur-
rent lower volatility of the Indian
rupee
vis-a-vis
the US dollar, the
overall margins should further
improve in the fourth quarter.
In the case of SBU-Industrial, de-
spite the significant degrowth in tel-
ecom batteries, the overall volume
growth for the quarter was nearly 13
per cent due to increased demand for
inverter and VRLA batteries.
The capital expenditure for the
current year is expected to be Rs.
270 crores.
w
Batteries
Mr. T.V. Ramanathan, M.D. and CEO