Kataky’s new role as MD to boost prospects
Exide Industries Ltd. has reported higher net profit in the first quarter of 2013-14. The sequential growth in profit before tax of Rs. 238 crores has been significantly higher by 16 per cent as compared to the previous quarter ended March 31, 2013.
During the first quarter of April-June 2013, sales at Rs. 1,626 crores registered an improvement of five per cent, whilst profit before tax showed a growth of nine per cent as against the corresponding quarter of the previous financial year. The performance has improved both year-on-year and sequentially, particularly at a time when industries to which Exide caters to are witnessing severe degrowth in the recent past.
Ascribing the rise in profitability to better margin management, judicious product mix and cost reduction through value engineering, Mr. P.K. Kataky, Managing Director & CEO of Exide Industries Ltd., said: “The improved financial performance is largely due to increased sales growth in the aftermarket segment of the automotive battery business. Our emphasis on value engineering also paid rich dividends to improve margins. These efforts will continue across all levels so that the momentum is carried into the future.”
Mr. Kataky who took over as Managing Director & CEO on May 1 last added: “The improved performance during the quarter is all the more significant because it comes at a time when the automotive OE business has suffered severely due to slack in demand from the industry. In the coming months, the depreciation of the rupee will increase the cost of imported lead. Performance of the industrial batteries business also remained damp due to overall stagnation in both the world as well as Indian economy. Even home UPS battery sales were depressed during the quarter due to advance onset of the monsoon. Batteries for solar applications, however, are showing an encouraging growth trend”.