Exide Industries Ltd. registered a 25 per cent increase in turnover at Rs. 1,551 crores in the first quarter of 2012-13 (April to June). Profit from operations during the period at Rs. 205 crores rose 10 per cent sequentially and three per cent as compared to the corresponding period of the previous fiscal. Net profit of Rs. 152 crores, reflecting a degrowth of seven per cent on YOY basis, is 6.6 per cent higher than the previous quarter.
The prevalent depressed condition in the automotive OE segment somewhat eroded the beneficial impact of the higher sales volume achieved in the replacement market. “Being a significant player in the automotive OE business, any negative swing in the auto sector is a matter of concern for the company. Nevertheless, the company is able to modestly improve its overall margin levels”, said Mr. T.V. Ramanathan, Managing Director and CEO of Exide Industries.
The volume growth in the four-wheeler automotive battery division was 10 per cent, and the volume growth of industrial batteries was 19 per cent for the quarter under review. The company’s motorcycle battery business continued to do well, showing 28 per cent volume growth.
The price of lead continued to remain under check in the international markets during the period under review. However, the depreciation of the rupee vis-à-vis the dollar negated most of the resulting advantages.
“Though synergistic, this is a new line of business for us where we will have to make a niche for ourselves through top level after-sales service. The company is using its existing network of nationwide dealers to market the product”, Mr. Ramanathan added.
The capital expenditure for the current financial year is budgeted at Rs. 270 crores.