Exide net profit surges 132 percent

Kolkata, Jan 11 (Inditop.com) Exide Industries, the country’s largest lead acid storage battery manufacturer, saw its net profit rise 132 percent to Rs.130 crore in the third quarter this fiscal, the company said in a statement Monday.

It had posted a profit of Rs.56.15 crore in the corresponding quarter in 2008-09.

“Apart from the low base effect, the robust profit growth is a direct result from volume growth, improved product mix and cost efficiencies secured on sourcing of materials, in addition to continued austerity measures,” said Exide managing director and chief executive T.V. Ramanathan.

Buoyancy in the automobile sector, both four-wheelers and two-wheelers, coupled with new products, deeper market penetration backed by extensive after sales service led to increased growth in the automotive battery business, Ramanathan added.

“In the industrial battery business, the negative effect of degrowth in the telecom sector has been more than compensated by growth in power, traction, UPS and other infrastructural segments,” he said.

“With the improved economic scenario, both domestically as well as internationally, we hope that the current momentum of growth will continue in the near term. However, volatility in the international lead prices remains a cause of concern.”