Calcutta, July 16: Exide Industries has reported a 6.87 per cent dip in net profit at Rs 152.03 crore for the quarter ended June 30, 2012 on the back of sluggish demand in the automotive sector and volatility of the rupee.
The country’s largest lead acid battery maker had registered a net profit of Rs 163.26 crore in the year-ago period.
The company, however, registered a 6.68 per cent rise in net profit over the previous quarter.
Net sales were up 25 per cent at Rs 1,551 crore against Rs 1,243.28 crore over the same period previous year.
A large part of the profit slide was because of the slowdown in demand from the automotive OE (original equipment) segment. “Being a significant player in the automotive OE business, any negative swing in auto sector is a matter of concern for the company,” said T.V. Ramanathan, managing director and CEO of Exide.
Exide has a market share of over 70 per cent in the auto OEM (original equipment manufacturer) segment in the organised market.
Further, it suffered a net exchange loss of Rs 10.31 crore during the quarter against a net exchange gain of Rs 3.86 crore in the same period previous year.
“Price of lead continued to remain under check in the international markets during the period under review. However, the depreciation of the rupee vis-à-vis the dollar negated most of the resulting advantages,” the company said in a statement today.
The company has rolled out its home UPS segment during the quarter. Exide said that they were “now in the process of increasing the production capacity, having stabilised the products”.
The Exide scrip fell 1.53 per cent to Rs 135.60 on the BSE today.