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Exide Industries, the country’s largest automotive battery maker, reported an over two per cent rise in net profit to ₹234 crore for the quarter ended September 30. The net profit in the year-ago-period stood at ₹229 crore. Revenues stood at ₹3,290 crore, up 19.5 per cent, YoY.
In a press release, Exide said, sharp input cost inflation limited gross profit increase to nearly 12 per cent in Q2FY22; while its “balance sheet remains strong with negligible debt and a comfortable liquidity position”.
The company further added that replacement demand was strong for automotive batteries (two-wheelers and four-wheelers) with easing of restrictions. Relationships with large OEMs were strengthened.
During the quarter, UPS battery sales in the industrial strategic business units grew at a robust pace, driven by continuous rise in the makeshift home offices and data centres. Industrial sectors such as telecom and power are also showing good signs of demand recovery, though demand from other sectors is expected to increase as commercial activity increases in the country.
According to Subir Chakraborty, MD & CEO, Exide Industries, both automotive and the industrial SBUs are witnessing demand recovery compared to the same quarter the previous year and also sequentially.
“Currently, as an ongoing focus area, sales transformation and cost compression remain the core strategies to improve efficiencies within the company,” he said.
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