The Hindu Business Line : Exide Q1 net up 17% at Rs 82 cr

MUMBAI: Lead storage batteries manufacturer Exide Industries on Friday announced a net profit of Rs 82.20 crore for the quarter ended June 30, a growth of 17 per cent over the same period a year-ago.

The company had posted a net profit of Rs 70.11 crore for the quarter ended June 30, 2007, Exide Industries said in a filing to the Bombay Stock Exchange.

“Profit growth was affected by the depreciation of the rupee vis-a-vis all major currencies. A depreciating rupee affects profitability since we import a sizeable part of our main raw material lead,” said the Exide Industries Managing Director and Chief Executive Mr T V Ramanathan. Provided the exchange gain or loss arising from rupee volatility was excluded the growth in profit for the quarter would have been 40 per cent.

Total income of the company rose to Rs 908.88 crore for the first quarter of this fiscal from Rs 664.58 crore in the previous financial year. “In view of the burgeoning inflation, we have to keep a very tight leash on costs over the next three quarters t o keep the momentum of the first quarter going,” he added.

The automotive segment is likely to see a lot of activity in near future with the planned launches by a number of car makers, including the much-awaited Tata Motor's Nano, which would also be powered by Exide batteries, the company added.

During the quarter, the company acquired 51 per cent stake in Bangalore-based smelting and refining unit Leadge Alloy India, that is expected to give the company better control over the business of recycling lead storage batteries and consequently meetin g the requirements set forth by the government.

Shares of the company were traded at Rs 68, down 0.51 per cent on the BSE in morning trade. - PTI

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