Exide net surges 84 pc

Mumbai, July 20 (UNI) Exide Industries today reported 51 per cent growth in its gross turnover and 84 per cent growth in net profit during the first quarter of the financial year 2007-08, compared to the corresponding quarter of the previous financial year.

The company's Board met here today under the chairmanship of its new non-executive chairman Rajesh Kapadia to adopt the financial results for the quarter April-June 2007.

Despite a runaway price rise in its main raw material, lead, and slower than expected growth in the automobile industry, Exide Industries gross turnover grew to Rs 848 crore (from Rs 563 crore during Q1 06-07) and profit after tax grew to Rs 70 crore (from Rs 38 crore during Q1 06-07).

Exide MD and chief executive officer T V Ramanathan said, ''The weaker dollar somewhat cushioned the rise in lead prices in the international market. We were compelled to adjust the prices of our products more than once during the quarter due to the phenomenal rise in the cost of our main raw material.'' He said better inventory management and prudent purchase decisions had helped in improving the margins.

He said in May and June there was some dip in the growth rate in the auto industry due to the onset of monsoon and lower demand for new vehicles (especially in the two wheeler segment) consequent to the rise in auto finance rates.

However, the company's presence in a large number of sectors of the economy, which uses the company's products, ensured the overall volume growth of the company in a satisfactory manner, he added.

''The tremendous success of the Exide-powered SX4 launched by Maruti in the recent past gives us confidence. The automotive industry over the next three quarters will surely come out of the temporary slump in sales. Interest rates have already started falling which will help in this recovery,'' Mr Ramanathan said.

Exide derives 60 per cent of its business and profits from the auto industry. The other 40 per cent, that is industrial battery, saw a phenomenal growth during the period under review.

Exide's new state-of-art dedicated traction battery project in Haldia near Kolkata is on schedule, Mr Ramanathan said, adding that commercial production is expected to commence before the end of the current fiscal, especially to cater to the export markets.

UNI