Exide Q4 net up 24.73 pc, dividend at Rs 3 per share

Mumbai, Apr 21 (UNI) Exide Industries Ltd., has posted a net profit of Rs 25.89 crore for the quarter ended March 31, 2006 as compared to Rs 18.22 crore for the similar quarter in the previous fiscal.

Announcing the results, the company said its total income (net of Excise Duty, VAT&Sales Tax) has increased from Rs 311.89 crore in Q4 FY 05 to Rs 388.91 crore for Q4 FY 06.

Briefing newsmen here today, Exide Industries' Executive Chairman&CEO S B Ganguly said, ''the superior financial performance is a result of sharp control on costs and improvement in productivity in all our eight factories which negated the impact of rising raw material prices. The year also saw steady demand growth in both automotive sector as well as the industrial sector.'' Replying to a question on lead prices, Mr Ganguly said, the recent global trend of entry of pension funds and investment funds into base metal commodities business as an investment option has resulted in an unprecedented rise in prices of metals like copper, zinc and lead. However, the company expects prices of lead to stabilise now since the price rise in lead has not happened due to any fundamental demand supply mismatch, he added.

The company has posted a net profit of Rs 100.73 crore for FY 06) as compared to Rs 77.28 crore for FY 05. Total Income (net of Excise Duty, VAT&Sales Tax) has increased from Rs 1186.16 crore in FY 05 to Rs 1395.06 crore for FY 06.

The unaudited consolidated results show that the group has posted net profit of Rs 72.17 crore for FY 06 as compared to Rs 79.50 crore for FY 05. Total Income (net of Excise Duty, VAT&Sales Tax) has increased from Rs 1272.44 crore in FY 05 to Rs 1486.63 crore for FY 06.

The board of directors of the company has recommended a divided of Rs 3.00 per share, which works out to 30 per cent as agains the Previous year's 25 per cent, subject to approval of the shareholders at the ensuing annual general meeting of the cmpany.

Replying to a question, Mr Ganguly said the company plans to spend Rs 80 crore on capital expenditure plan this year, of which Rs 45 crore will be on automotive battery segment and Rs 35 crore on industrial batteries. To a related query, he said ''the capex allocation will address capacity expansion as well as modernisation of all the eight units in the country.'' After tbe completion of expansion, he said the company's total capacity in automotive battery segment will rise from 4.8 million to 6.0 million units, while industrial batteries from 800 million amperes to 1000 million amperes.

Commenting on the market segment, Mr Ganguly said his company caters to 65 to 70 per cent OEM (original equipment manufacturers) segment, while the remainder on branded-replacement market segment.

To a query, he said, though, exports of industrial batteries grew by more than 33 per cent, exports account for about 6 per cent in the total turnover. It exports to Korea, Japan, Australia, New Zealand, South Africa and Netherlands.

UNI SN PP SKB1842