The Hindu Business Line : Exide net up 42%

Kolkata. Oct 12 Exide Industries has posted 42 per cent increase in net profit to Rs 62.24 crore on a topline growth of 48 per cent to Rs 668 crore during the second quarter of this fiscal compared to the corresponding period of 2006-07.

The growth in profit, however, is lower compared to the first quarter of this fiscal. Exide posted 84 per cent growth in net profit on 51 per cent increase in turnover during April-June, 2007.

While company officials were not available for comment, a close scrutiny of the results of the company during July-September 2007 period indicates a dip in other income and rise in tax expenses compared to the second quarter of last fiscal.

Interestingly though the raw material cost has increased by a 72 per cent from Rs 289 crore in July-September 2006 to Rs 497 crore due to rise in international lead prices, Exide has managed to restrict the growth in total expenditure at 48 per cent.

The profits could have been higher had lead prices not moved northwards so drastically during the quarter. “Lead price continues to remain a source of serious concern for us. The current LME price of lead is above $3,900 per tonne as against $1,945 at the beginning of the financial year. However, with a significant portion of our business having been covered by price fluctuation clause, we have ensured that the adverse effect is minimised,” said Mr T.V. Ramanathan, MD & CEO, in a press release issued today.

“Reduced reliance on imported lead is the longer term solution,” he added. Both the two strategic business units of Exide – automotive and industrial – continued on its consistent growth path, the release added. Shares of Exide closed 2.46 per cent lower at Rs 67.45 on Friday.