Exide Q1 net profit slips 7 percent

Kolkata, July 16 (IANS) Leading storage battery producers Exide Industries Monday reported a 6.87 percent slide in its net profit for the quarter ended June 30, 2012.

The company's net profit registered in the past quarter was Rs.1,520.30 million, as compared to Rs.1,632.50 million for the same period of last year.

Profit before tax of the Kolkata-based firm also decreased to Rs.2,185.30 million for the quarter under review from Rs.2,282 million for the quarter ended June 30, 2011.

Total income has increased from Rs.12,789.50 million for the quarter ended June 2011 to Rs.15,683.20 million in the same period this year, the company informed the Bombay Stock Exchange (BSE).

Total expenses of Exide Industries during the first quarter this fiscal increased to Rs.13,484.30 crore from Rs.10,483.30 crore in the corresponding period last fiscal.

Through a press release the company said the prevailing depressed conditions in the automotive OE segment somewhat eroded the beneficial impact of higher sales volume achieved in the replacement market.

"Being a significant player in the automotive OE business, any negative swing in the auto sector is a matter of concern for the company. Nevertheless the Company is able to modestly improve its overall margin levels", said T.V. Ramanathan, managing director and CEO of Exide Industries.

During the quarter under review, the company rolled out home UPS systems across cities under its own brand, and is now in the process of increasing production capacity.

"Though synergistic, this is a new line of business for us where we will have to make a niche for ourselves through top level after sales service. The Company is using its existing network of nationwide dealers to market the product," Ramanathan said.

Capital expenditure of the firm for the current fiscal is budgeted at Rs.2.7 billion (Rs.270 crore).