Mumbai: Exide Industries Ltd on Tuesday reported a 35% rise in net profit in April-June quarter on higher sales and better margins, beating analysts expectations.
“Overall volume growth was robust and higher volume growth has substantially supported the topline growth of the company,” said Vaishali Jajoo, analyst at Angel Broking.
In April-June, Exide reported a net profit of Rs165 crore compared with Rs122 crore a year ago. Net sales rose to Rs1,150 crore from Rs903 crore.
A Reuters poll of brokerages had expected Exide to report a quarterly net profit of Rs143 crore on net sales of Rs1,070 crore.
“Our continued focus on cost reduction and product mix is once again reflected in this quarter’s overall performance,” TV Ramanathan, chief executive officer, said in a statement.
Exide has acquired smelting and refining units in Pune and Bangalore to meet a majority of its lead requirements locally and protect itself against lead price volatility and maintain margins.
Its board on Tuesday approved acquiring the entire holding in its Bangalore smelting unit Leadage Alloys India Ltd, where Exide presently holds 51%.
“The higher profitability figures are satisfactory considering the continued volatility in raw material prices and foreign exchange rates even as competition from cheaper imports from neighbouring countries continued unabated,” Exide said.
The firm will also start production at its new motorcycle battery manufacturing plant at Ahmednagar in Maharastra, it said, without giving a timeline.
Exide shares ended up 2.41% at Rs135.75 in a firm Mumbai share market.