• Exide reports 35 per cent rise in PAT
Kolkata, July 13, 2010: In an encouraging start to the financial year 2010-11 Exide Industries Ltd today reported a 35 per cent rise in net profit and 30 per cent rise in gross sales during the first quarter of 2010-11 compared to the corresponding period of the previous year. The company’s board met in the city on Tuesday to review the first quarter (April-June 2011) results of the current financial year.
During the period under review, the company’s gross sales stood at Rs 1410 crore, compared to Rs 1084 crore during the same period of the previous year and net profit stood at Rs 165 crore compared to Rs 122 crore earned during the same period of the previous year.
“Our continued focus on cost reduction and product mix is once again reflected in this quarter’s overall performance,” said Mr T.V. Ramanathan, Managing Director and Chief Executive Officer Exide Industries Ltd.
The higher profitability figures are satisfactory considering the continued volatility in raw material prices and foreign exchange rates even as competition from cheaper imports from neighbouring countries continued unabated.
“The Indian market for batteries across segments is fast maturing and customers are becoming more quality rather than price conscious. This positive trend will continue and gain momentum in future to help technology focussed companies like Exide Industries,” Mr Ramanathan added.
The company’s penetration strategy into the replacement market for commercial vehicles and tractor segment is paying off handsomely where sales grew by 14 per cent. Among other segments, motorcycle battery sales showed significant growth, improving 27 per cent in volume terms.
“To cater to the increased demand for our motorcycle customers – both in OE and after market - and to consolidate our position as the world’s second largest two-wheeler battery manufacturer, we are going to start production at our new motorcycle battery manufacturing plant at Ahmednagar in Maharastra,” Mr Ramanathan added.
During the current financial year the company’s automotive battery SBU showed a growth of 28 per cent and the industrial battery SBU showed a growth of 26 per cent in value terms. Significantly the growth in value terms far outstrips the growth in unit terms in all the segments.
The Board also approved in principle acquisition of the entire shareholding in Leadage Alloys India Limited, a Lead smelting unit, where Exide presently holds 51% shares. With such acquisition, Exide would have two wholly owned smelting units for captive consumption to cater to its requirements of Lead and Lead Alloys.
The company’s 63rd annual general meeting is scheduled to be held in the city on Wednesday the 14th July, 2010.
• Exide declares increase of 89 % in net profit for 09-2010
Highlights of 09-10
• Net turnover rises 12 per cent to Rs 3,794 crore
• Pays 40 per cent final dividend ; annual dividend 100 per cent
• ROCE and RONW rise to 42% and 44 per cent respectively
• Debt-Equity Ratio at 0.04 : 1
Kolkata, April 28, 2010: Exide Industries Ltd, the country’s largest lead acid storage battery
manufacturer and stored energy solutions provider, today declared its annual results for the year 2009-10. While net turnover during the 12-month period rose 12 per cent to Rs 3794 crore, net profit during the same period jumped 89 per cent to Rs 537 crore.
During the fourth quarter of the financial year 09-10, the company clocked a net turnover of Rs 1028 crore and a net profit of Rs 200 crore, showing a growth of 28 per cent and 88 per cent respectively over the corresponding period of the previous financial year.
The Exide Industries Ltd Board of Directors, which met in Mumbai today to approve the financial results declared a final dividend of 40 per cent. Added to the interim dividend of 60 per cent declared earlier during the year, this takes the total dividend payment during the financial year 2009-10 to 100 per cent.
Commenting on the improved financial results for the year, the company’s Managing Director and Chief Executive Officer, Mr T.V. Ramanathan, said, "The increase in profitability was partly due to availability of Lead and alloys which constitutes a major raw material for the products from the two captive Lead Smelters acquired two years ago.
Apart from the same, favourable foreign exchange rates, strict austerity measures and control on costs on all fronts contributed to the sharp rise in the profitability."
"A volume growth of 16% in Automotive Batteries was achieved in spite of increased competition" he added.
"Exide continues to enjoy the trust and be the preferred supplier of most of the vehicle manufacturers in all segments. In the Industrial business, inspite of the depressed export
markets and significant degrowth in telecom segment, we were able to record a 10% volume growth."
Mr Ramanathan further added that "the Company was not able to keep pace with the surge in demand in the automotive sector and consequently lost some top line growth due to capacity limitations. The Company is expanding its production capacities which include setting up a new plant at Ahmednagar, Maharashtra, on a fast track mode. Consequent to this, the capital expenditure during the current financial year is expected to be atleast Rs 350 crores.
"Exide continues to maintain its focus on its Corporate Social Responsibility and apart from several initiatives taken by the individual factories, it is partnering with UNICEF in their Child Environment Programme in India, which provides total sanitation and accelerated rural water supply programmes mainly to the hitherto unreached and marginalized rural communities. "This initiative", Mr Ramanathan added, "has been linked to raising consumer consciousness and creating awareness for return of used batteries which contain lead and thereby inducing the vehicle owners also to indirectly participate in this cause."
The Company has entered into Technical Collaboration Agreements for certain new products like ISS Batteries for supplies to Automotive sector.
The debt equity ratio of the Company as at the end of the year was 0.04 : 1.
• Exide declares 132% per cent rise in Q3net profit
Kolkata, January 11, 2010: Exide Industries Ltd, declared a 132% rise in the net profit to Rs 130 crs during the third quarter (October – December 09) of financial year 2009-10. During this period, the company’s net turnover rose 16% to Rs 913 crs.
For the nine months of the current financial year the company’s net profit was Rs 402 crore on a net turnover of Rs 2766 crore. The company’s board of directors met in Kolkata on Monday to adopt the financial results for the period October to December 2009.
Commenting on the third quarter performance, Mr T V Ramanathan, Managing Director and Chief Executive Officer, Exide Industries Limited, stated “apart from low base effect the robust profit growth is a direct result from volume growth, improved product mix, and cost efficiencies secured on sourcing of materials, in addition to continued austerity measures.
Buoyancy in the automobile sector, both in four wheelers and two wheelers, coupled with new products , deeper market penetration backed by extensive after sales service led to increased growth in the automotive battery business. In the industrial battery business the negative effect of degrowth in the telecom sector has been more than compensated by growth in power, traction, UPS and other infrastructural segments.
With the improved economic scenario, both domestically as well as internationally, we hope that the current momentum of growth will continue in the near term. However, volatility in the international lead prices remains a cause of concern”, he added.
To mitigate any adverse impact arising from possible escalations in the imported lead prices continuous investments in technology and for capacity upgradation is being made by the captive lead smelting and refining units in Pune and Bangalore.
He further added that “to maintain its leadership position the Company will continue to invest in technology, R&D and capacity upgradation.”
• Exide continues its steady growth
Highlights of 08-09
• Turnover rises 17 per cent to Rs 4233 crore
• Pays 20 per cent final dividend; full year dividend payout 60 per cent
• Automotive sales cross 14 million batteries
• Industrial battery sales cross 1.3 billion amp hours
• Haldia Factory wins the prestigious TPM Award.
Kolkata, April 27, 2009: Exide Industries Ltd, the country’s largest lead acid storage battery manufacturer and stored energy solutions provider, today declared its annual results for the year 2008-09. While net turnover during the 12-month period rose 19 per cent to Rs 3,393 crore, net profit during the same period increased 14 per cent to Rs 284 crore.
During the fourth quarter of the financial year 08-09, the company clocked a net turnover of Rs 798 crore which shows a marginal growth. However, the Profit Before Tax at Rs 106 crore and Net Profit at Rs 68 crore shows a growth of 19 per cent and 9 per cent respectively.
The Board of Directors of Exide Industries Ltd which met in Mumbai on Monday to adopt and approve the financial results, recommended a final dividend of 20 per cent (Re 0.20 per share). Added to the interim dividend of 40 per cent (Re 0.40 per share) declared earlier during the year, this takes the total dividend payment during the financial year 2008-09 to 60 per cent (Re 0.60 per share).
Commenting on the improved financial results for the year, the company’s Managing Director and Chief Executive Officer, Mr T.V. Ramanathan, said, “We are happy to record year on year growth in virtually all the financial parameters of the company despite this being a year that was particularly difficult for a number of sectors in which the company operates.
“While on the one hand, price of our most important raw material – lead, fell drastically within a very short period of time, the rupee also lost its strength almost in tandem. We weathered the storm through enhanced focus on production efficiencies, better inventory management (both at the raw material and finished goods level) and serious cost cutting across all functions. All this was done without any sacrifice to the inherent quality of our products.”
During the year under review, Exide started delivery of Nano batteries to Tata Motors. “It gives us tremendous pride to confirm that the much awaited people’s car is going to roll out with batteries originally designed and now being manufactured by Exide Industries,” Mr Ramanathan said. The company is using its Shamnagar factory in West Bengal to produce the battery.
During the year Company’s capital expenditure was Rs 160 crs.
The Company’s reliance on bank borrowings has reduced and consequently the Debt : Equity Ratio of the Company at end March 09 is 0.26 : 1.
However, the company’s original equipment business in the automotive sector didn’t perform well, particularly in the last two quarters, due to degrowth in the industry. But robust volume growth in the replacement market ensured overall growth for the automotive battery SBU. Exide is a market leader in the after market branded Automotive industry in India.
One of the reasons for Exide’s continued top and bottomline growth during the year under review is the fact that the company is not entirely dependent on only the automotive industry any more. Today approximately 35 per cent of its business and profits come from industrial range of batteries like telecom, power, traction, inverter, UPS etc. Some of these sub-segments like Inverter, UPS and Telecom did exceptionally well during the year, helping the company to turn in superior numbers.
During the year under review, Exide Industries consolidated its position in the lead recycling and smelting business by acquiring 51% stake in a Bangalore based company, namely Leadage Alloys India Limited. This is in addition to the 100% owned other lead smelting facility near Pune, Chloride Metals Ltd that the company had acquired in the previous financial year. These two smelters together met 28% of Company’s total Lead and Lead Alloy requirements.
“With these two lead smelting units under our control, we are in a better position to monitor the environmentally crucial issue of lead recycling in our own captive units,” Mr Ramanathan added.
To further bolster this environmental initiative, during the year Exide Industries joined hands with UNICEF to support them in their Child Environment Programme that involves creating better environmental conditions for underprivileged children. This is a further recognition that “improving the living conditions of the underprivileged children” is one of our primary societal obligations.
The support to UNICEF from Exide is linked to the number of used batteries that Exide gets as return from its existing customers. For every returned battery a particular sum of money would go to UNICEF, thereby giving an incentive to the Company’s environmentally sensitive customers to return their used batteries to Exide Industries. Exide also pays its customers for returning the used batteries.
During the year under review, the company’s Haldia factory got the most prestigious TPM Award 2008, from Japan Institute of Plant Maintenance. This is one of the world’s most coveted manufacturing excellence awards.
• Exide maintains steady growth
Kolkata, January 12, 2009: Exide Industries Ltd, the country’s largest lead acid storage battery manufacturer, marginally improved its profit before tax for the quarter ended December 31, 2008. At its board meeting held today to consider the unaudited financial results for the third quarter of the current financial year, the company reported a profit before tax of Rs 86 crore as against Rs 83 crore earned during the same period of the previous financial year. The net sales for the quarter of Rs 789 crore shows a year on year (YOY) growth of 9 per cent.
For the nine month period of the current financial year 2008-09, the net sales of Rs 2598 crore and the net profit of Rs 216 crore reflected a YOY growth of 26 and 15 per cent respectively.
The board also approved the payment of an interim dividend of 40 percent to the shareholders.
Commenting on the Q3 performance, Exide’s Managing Director and Chief Executive Officer, Mr T.V. Ramanathan said, “stringent austerity measures introduced from October 2008 and reduced reliance 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.”
Commenting on lead prices, Mr Ramanathan said, “the recent softening of lead prices in the international markets hasn’t helped the company much due to depreciation of the rupee against dollar. Hopefully by the end of the next quarter the company will get some benefit provided lead prices don’t become volatile again and the rupee somewhat strengthens.”
Commenting about the future, Mr Ramanathan said, “a strong balance sheet and a lower debt/equity ratio should enable the company to sustain strong cash flows and thus meet the challenges arising from lower buoyancy in the auto OE market in the near term.”
In the automotive segment in Q3, despite the slow down of OE market, the market shares were retained. The steady growth in the replacement market enabled the company to secure an overall volume growth of 8 per cent.
In the industrial battery segment the sales volume growth in Q3 was 17%. The sales volume in the telecommunication segment is expected to be less buoyant in the ensuing quarters. However, we expect steady volume growth in both traction and UPS home segments.
“Our continued focus on austerity measures and improved operational efficiencies in all our factories and efficient management of inventory will underpin the company’s strategy to counter the uncertainties now built up in the Indian economy,” Mr Ramanathan said.
• Exide reports 25 per cent rise in net profit in Q2.
Kolkata, October 23:Exide Industries Ltd, the country’s largest Lead Acid Storage Battery Manufacturers achieved a YOY net profit growth of 25% for the quarter ended September 30, 2008. At its Board Meeting held today, to consider the unaudited results for the three months ended 30 September 2008, the Company reported a net profit of Rs 78 crores as against Rs 62 crores same period of the previous year. The net sales for 3 months of Rs 901 crores also show a YOY growth of 35%.
For the 6 months of the current financial year 2008 / 09, the net sales of Rs 1,807 crores and the net profit of Rs 160 crores reflected a YOY growth of 36% and 21% respectively.
Commenting on the satisfactory Q2 performance, Exide’s Managing Director and Chief Executive Officer, Mr T.V. Ramanathan said, “proactive steps taken during the last 12 months to secure a portion of raw materials from Secondary Lead indigenously available by acquiring Lead smelting capacities coupled with an improved sales mix has ensured satisfactory growth despite the very challenging economic environment”.
The strong Balance Sheet and the very low Debt Equity Ratio would ensure the Company meet its finance requirements for the ensuing quarters also in a cost effective manner, Mr Ramanathan added .
The recent softening of Lead prices in the international market to some extent has been neutralized by the sharp depreciation of Rupee against the Dollar.
In the Automotive battery segment, the growth in value terms for the six months ended 30 September 2008 is 35%. The lower volume growth in the OE business has been countered by a robust growth in the Replacement Trade sales.
Under the Industrial battery segment, the overall growth in value terms for the half year is 40%. Telecom and Power sectors underpin this value growth. Exide’s traction batteries continued to find ready export markets in the developed economies of Western Europe, South Africa, Korea, Japan and Australia.
About Exide: Exide Industries Ltd is the country’s largest manufacturer of lead acid storage batteries and power storage solutions provider. With seven international standard factories spread across the nation, the company offers one of the widest ranges of batteries for every conceivable application in industrial as well as automotive segments. Exide also has a manufacturing subsidiary in Sri Lanka and does business globally through its subsidiaries and affiliates in South-East Asia, Australia and Europe. Exide’s products are sold globally, particularly in developed markets like Australia, Japan and Western Europe, under its own brand name.
Exide’s strong brand pull, established in India for close to hundred years, is supplemented by its nationwide dealer network and a very strong R&D center. With the help of two of its Japanese collaborators – Shin Kobe and Furukawa - Exide has consistently remained at the cutting edge of international battery technology and introduced various pioneering products and power storage solutions in the Indian and global markets.
Exide’s products find application in automotive, two-wheelers, inverters, UPS, power, telecom, railways and submarines, among others. Exide is also present in the non-conventional energy business where it designs and integrates solar and wind power solutions.
• Exide net surges 34 per cent, top line grows to Rs 1135 crore
Kolkata, July 24, 2008: Exide Industries Ltd today declared 34 per cent growth in its gross turnover and 17 per cent growth in net profit during the first quarter of the financial year 2008-09, compared to the corresponding quarter of the previous financial year.
The company’s Board met in the city on Thursday evening to adopt the financial results for the quarter April-June 2008.
During the period under review, Exide Industries Ltd’s gross turnover grew to Rs 1135 crore (from Rs 848 crore during Q1 07-08) and profit after tax grew to Rs 82 crore (from Rs 70 crore during Q1 07-08).
Commenting on the performance, Managing Director and Chief Executive Officer, Mr T.V. Ramanathan, said, “profit growth was affected by the depreciation of the rupee vis-a-vis all major currencies. A depreciating rupee affects profitability since we import a sizeable part of our main raw material Lead. In view of the burgeoning inflation rates, we have to keep a very tight leash on costs over the next three quarters to keep the momentum of the first quarter going.”
If exchange gain / loss arising from Rupee appreciation / depreciation is excluded
the growth in profit for the quarter is 40%.
With the automotive segment showing less than buoyant growth rates in some of the segments, the company’s industrial battery business, particularly in telecom and power sectors continued to show robust growth.
The automotive segment is expected to see a lot of excitement in the near future with the planned launches of a slew of new car models by a number of manufacturers. Virtually all these new launches from the auto giants will be powered by Exide batteries, not to speak of the much awaited Nano from the Tata Motors stable half of which will also run on Exide batteries.
During the period under review the company acquired 51 per cent stake in Leadage Alloys India Ltd, a Lead smelting and refining unit located near Bangalore. This is expected to give the company better control over the business of recycling of used Lead acid storage batteries and consequently meet the requirements set forth by the government in its Battery Handling and Management Rules. Its own smelting unit will also help Exide combat the rising Lead prices more effectively.
• Exide Industries net profit jumps 61 per cent to Rs 250 crore
Highlights of 2007 – 08
- Turnover rises 51 per cent to Rs 3606 crore
- Pays 40 per cent dividend and thus maintains uninterrupted dividend payment track record for 60 years
- Automotive battery production crosses 608 million plates
- Industrial battery production crosses 1169 million amp
- Dedicated facility for export market goes on stream
Kolkata, April 22, 2008 : Exide Industries Limited today announced its annual results for the financial year 2007-08. While gross turnover rose 51 per cent to Rs 3606 crore for the 12 month period, net profit rose 61 per cent to Rs 250 crore, compared to the previous financial year.
For the fourth quarter (January to March 2008) gross turnover rose from 672 crore to 1008 crore, registering a growth of 50 per cent. Net profit during the quarter also grew in tandem from 39 crore to 63 crore, recording a growth of 62 per cent.
As a result of strong performance, the Return on Capital Employed (ROCE) and Return on Net Worth(RONW) have improved to 35% and 40% respectively. Debt Equity Ratio has also improved to 0.35:1 at end March 2008.
The Exide Industries Limited Board which met today to adopt and approve the results declared a dividend of 40 per cent, thereby maintaining its record of uninterrupted dividend payment for 60 years.
Commenting on the rise in profitability despite high input costs, particularly lead which accounts for close to 70 per cent of the costs, MD & CEO,Mr T V Ramanathan said, “the wildly fluctuating cost of lead in the international markets remains a cause of concern for us. However, during the year we could successfully introduce the concept of price escalation clause for most of our institutional customers in industrial batteries, which already existed in the automotive OEM segment. This protected us from the fluctuation in lead prices to a large extent.”
During the year 2007-08, Exide Industries Limited also made its maiden foray into the business of lead smelting by acquiring a unit in Maharashtra. “With our own lead smelting unit in place, we are now in a position to have better control on recycling of used batteries which gives us a major edge over the unorganized sector,” Mr Ramanathan said.
“With the economy continuing to grow at the rate of over eight percent, the future of the lead acid storage battery industry looks promising. However, the rising inflation rate is an area of concern. Hopefully the concerted government efforts to rein in the rise in prices will bear fruit soon,” Mr Ramanathan said.
With 62 per cent market share in the organized sector of automotive batteries industry, Exide’s grip on the auto segment remained firm despite growing competition from new entrants.
In industrial battery segment also the company’s market share remained unchallenged. Exide’s growth rate in the telecom sector was particularly noteworthy showing a growth rate of 71 per cent. SBU industrial’s exports grew by 35 per cent.
The production of batteries for industrial applications rose from close to one billion amp to nearly 1.2 billion amp during the year