India’s Exide Industries on Monday reported a 92% rise in July-Sept net profit, led by double-digit volume growth in automotive and industrial batteries.
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Net profit for the second quarter was INR1.5bn rupees, from INR778.4m a year ago.
A Reuters poll of brokerages had forecast a net profit of INR1.13bn for the quarter ended 20 September but net sales rose only 5% as a result of lower selling prices, the company said in a statement.
“The company benefitted by being able to source nearly 40% [of] its lead and lead alloy requirements from its own captive lead smelters and also having increased its market penetration by connecting tier two and tier three cities through a hub and spokes model,” managing director and chief operating officer, TV Ramanathan, said.
Volatility in lead prices was still a cause of concern, but the favoubarable dollar-rupee exchange rate would help in mitigating the impact, he added.
Exide also benefitted from cost savings as well as volume growth in home UPS, inverters and two-wheeler batteries, Ramanathan said.
The company increased capital expenditure for the current fiscal year to UNR1.3bn due to increased buoyancy in automotive and industrial segments, it said in a release.
The debt-equity ratio of the company was less than 0.1% on 30 September, the statement added.
