Tuesday, January 13, 2009

Exide Industries Ltd. Q3' 09 Results update

Exide Industries, country’s largest lead acid storage batteries disclosed a marginal rise in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company rose 1.79% to Rs 561.50 million from Rs 551.60 million in the same quarter last year.

Net sales for the quarter rose 9.24% to Rs 7,886.50 million, while total income for the quarter rose 9.20% to Rs 7,886.50 million, when compared with the prior year period.

Stringent measures introduced from October 2008 and reduced dependence on imported raw materials coupled with improved sales mix enabled the company to fully negate the adverse impact of significant reduction in off take from OE customers in the automotive segment.

The softening of the lead prices in the international markets couldn’t help much due to the depreciation of rupee against dollar. Though some benefits may come in next quarter if rupee strengthens and the lead prices remains stable. The company would be able to sustain strong cash flows due to the low debt equity ratio in its balance sheet.

Despite the slow down in the OEM segment the company has been able to maintain its market share. The company has been able to secure a steady growth in the replacement market with 8% increase in the overall volume. In the industrial battery segment sales volume has grown by 17%in this quarter. The growth in telecommunication segment is expected to be lopsided and in the UPS and traction battery segment a sturdy growth in the volume is expected in the coming quarters.

The board of directors of the company has also approved the payment of an interim dividend of 40% to the shareholders.


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