Calcutta, Oct. 23: Subdued demand for both automobile and industrial batteries have taken a toll on the revenue and profit of battery maker Exide Industries.
The company today reported a 1.30 per cent dip in net profit for the second quarter ended September 30 at Rs 118.63 crore against Rs 120.20 crore in the year-ago period.
Net income from operations fell 6.46 per cent to Rs 1,432.07 crore from Rs 1,531.07 crore in the year-ago quarter.
Exide managing director and CEO P.K. Kataky said the depreciation of the rupee and continued sluggish demand had impacted the performance of the company in the second quarter. Demand for both automobile batteries, especially OEM, and industrial batteries, including infrastructure, telecom and inverter, remained subdued.
Exide’s net profit for the half-year period ended September 30 increased marginally by 1.90 per cent to Rs 277.43 crore from Rs 272.24 crore in the same period a year ago.
The Exide scrip was down 2.29 per cent to Rs 126 apiece on the BSE today.
“The topline declined 12 per cent quarter-on-quarter to Rs 1,432 crore, significantly lower than our expectations of Rs 1,644 crore, mainly because of the demand slowdown in the automobile and industrial battery segments,” said Yaresh Kothari, an analyst of Angel Broking.
“While the demand on the OEM front was expected to remain sluggish, we believe the company faced headwinds even in the automotive replacement segment. Led by a weak operating performance, net profit declined 25.3 per cent quarter-on-quarter to Rs 119 crore, substantially lower than our estimates of Rs 160 crore,” he said.
The board of directors has declared an interim dividend of 110 per cent for this fiscal.