Exide Industries July-Sept net rises 92%

Exide Industries July-Sept net rises 92%

Kolkata: Exide Industries Ltd on Monday reported a 92% rise in July-Sept net profit, led by double-digit volume growth in automotive and industrial batteries.

Net profit for the second quarter stood at Rs150 crore billion, from Rs77.84 crore a year ago.

A Reuters poll of brokerages had forecast a net profit of Rs113 crore for the quarter ended 20 September.

However, net sales rose only 5% as a result of lower selling prices, the company said in a release.

“The company benefited by being able to source nearly 40% its lead and lead alloy requirements from its own captive lead smelters and also having increased its market penetration by connecting tier two and tier three cities through a hub and spokes model," T V Ramanathan, managing director and chief operating officer, said.

Volatility in lead prices was still a cause of concern, but the favourable dollar-rupee exchange rate would help in mitigating the impact, he added.

Exide also benefited from cost savings as well as volume growth in home UPS, inverters and two-wheeler batteries, Ramanathan said.

The company has increased capital expenditure for the current fiscal to Rs130 crore due to increased buoyancy in automotive and industrial segments, it said in a release.

The debt-equity ratio of the company stood below 0.1% as on 30 September, the release added.