Companies

Covid impact: Exide Q1 profit plunges 80% to ₹44 crore

Our Bureau Kolkata | Updated on August 03, 2020

G Chatterjee, Managing Director & Chief Executive Officer of Exide   -  Business Line

A pandemic-induced lockdown, followed by disruptions in supply chain and sales operations saw Exide Industries, the country’s largest car battery maker, report an over 80 per cent drop in standalone net profit to ₹44 crore for the first quarter ended June 30. Net profit in the corresponding period last year stood at ₹224 crore.

Standalone revenue from operations saw a 44 per cent year-on-year decline to ₹1,548 crore from ₹2,779 crore in the year-ago-period.

According to G Chatterjee, MD and CEO, Exide Industries, the onset of Covid pandemic and the consequent lockdown caused “severe disruption in manufacturing, supply chain, and sales and distribution operations”.

“This has caused an adverse impact on its sales as well as profitability during the quarter,” he said as per a notification to the bourses, adding that “manufacturing operations were resumed only in mid-May and thereafter scaled up”.

Incidentally, the company maintained that during Q1 FY21, OEM demand for automotive batteries remained subdued. However, there was a surge in demand for trade sales of automotive and UPS batteries. Business volumes of other institutional segments are gradually picking up.

Published on August 03, 2020

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