The Hindu : Business : Exide net profit at Rs. 55 crore in Q3

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Tuesday, Jan 15, 2008
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Exide net profit at Rs. 55 crore in Q3

Special Correspondent

KOLKATA: Exide Industries, which reported a 60 per cent growth in its net profit in the third quarter of the year, said the original equipment market (OEM) for both two and four-wheeler segments had been below expectations at the beginning of the year.

The company, which has already been chosen as a preferred supplier of batteries for Tata Motors’ Nano, saw an encouraging buoyancy in the replacement market.

An improved sales-mix and significant contribution from R&D towards savings in material cost helped bring margins to satisfactory levels, a company release said. The company board met here on Monday to take on record the third quarter results.

During the period under review, the company’s gross turnover grew to Rs. 910 crore from Rs. 578 crore with post-tax profit increasing from Rs. 35 crore to Rs. 55 crore.

T. V. Ramanathan, Managing Director and CEO, said that even though lead prices had softened in December, this benefit would be reflected only in the next quarter.

He also said Exide’s in-house R&D centre was closely associated with the development of a most suitable battery for the Nano vehicle right from the beginning. However, the offtake of this product will start from next financial year, when the new vehicle hits the market.

In the industrial battery segment, which constitutes 40 per cent of the turnover and profit, growth from the telecom sector was good, the release said.

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