Exide Industries Ltd today declared 60 per cent growth in its net turnover and 59 per cent growth in net profit during the third quarter of the financial year 2007-08, compared to the corresponding quarter of the previous financial year.

The company’s Board met in the city on Monday to adopt the financial results for the quarter October-December 2007.

During the period under review, Exide Industries Ltd’s gross turnover grew to Rs 910 crores (from Rs 578 crores during Q3 06-07) and profit after tax grew to Rs 55 crores (from Rs 35 crores during Q3 06-07).

During the nine-month period (April-December) of the current financial year, the company’s gross turnover grew to Rs 2598 crores from Rs 1711 crores during the corresponding period of the previous year and net profit grew to Rs 187 crores from Rs 117 crores.

An improved sales mix and significant contribution from the R&D towards savings in material cost underpinned satisfactory profit margins.

“Even though lead prices softened in the month of December, the benefit of such softer prices will be reflected only in the next quarter,” said Mr T.V. Ramanathan, managing director and CEO of the company.

“While there was encouraging buoyancy in the replacement market, the off take from both 4-wheeler and 2-wheeler OEM (original equipment market) was significantly below our expectations at the beginning of the year,” Mr Ramanathan added.

In automotive battery segment, Exide has already been chosen as a preferred supplier of batteries for Tata Motor’s new product Nano.

“Our in-house R&D Centre was closely associated with the development of a most suitable battery for the Nano vehicle from the very beginning when the vehicle concept was frozen. However, off take for such batteries will start from the next financial year, when the new vehicle hits the market,” Mr Ramanathan said.

In the industrial battery segment, which constitutes 40 per cent of the company’s turnover and profit, growth from the telecom sector was particularly spectacular. In fact the top line growth in telecom segment was 94 per cent.

“A much enhanced focus on pre-dispatch quality checks introduced in July-December period has started paying dividends in the form of a noticeable reduction in product related warranty claims,” Mr Ramanathan said.

Exide is in the midst of a rights issue, which opened on 28th December 2007 and will close on 28th January 2008. The issue price is Rs 30 and the offer is being made in the ratio of one share for every 15 shares held.

Sourced From: Sampark Public Relations Pvt Ltd

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