News Heading : Exide India, declares increase of 24 % in net profit for 2010-11
Mumbai, April 27, 2011: 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 ended 31 March 2011. While net turnover during the 12-month period rose 20 per cent to `4554 crores, net profit during the same period jumped 24 per cent to `666 crores.
During the fourth quarter of the financial year 2010-11, the company clocked a net turnover of `1226 crores and a net profit of `164 crores, showing a growth of 19 per cent and 22 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 `0.60 per Share (par value of ` 1). Added to the interim dividend of `0.90 per Share declared earlier during the year, this takes the total dividend payment for the financial year 2010-11 to ` 1.50 per Share ( par value ` 1) as against `1.00 per Share for the previous year.
Commenting on the improved financial results for the year, the company’s Managing Director and Chief Executive Officer, Mr T.V. Ramanathan, said, “the buoyant demand in the automotive OE (original equipment) segment continued into the fourth quarter as well. Consequently, we had to divert some capacity from our aftermarket business which again put pressures on our margins in the 4th Quarter. We are confident that on-going work on fresh capacity creation, will ease the capacity constraints by end of 2nd Quarter of the current financial year 2011 – 12.
Lead price, which plays a major role in any battery manufacturer’s financial fortunes, continued to remain very high in the international markets. Unlike previous years, the Company was not able to recoup the entire Lead cost push from the market and had to opt for a reduced margin. As for Industrial battery division, in the Inverter segment the demand has not sufficiently picked up due to pleasant weather conditions still subsisting.
“Over the years we have been gradually increasing the percentage of recycled lead, manufactured in our own dedicated smelting units, in our batteries. This is not just to ensure better control over the critical and volatile raw material, but also our contribution and commitment to the environment. The more we recycle the better it is for our environment,” Mr Ramanathan said.
Out of Capital Expenditure of `425 crores committed for the year ended 31 March 2011, the actual payout was `275 crores. The Capital Expenditure for the current year 2011 / 12 is reckoned at `370 crores which includes approximately `150 crs which relates to projects commenced in the year ended 31 March 2011.
All the subsidiary Companies were profitable during the year.
“Despite increased competition from both domestic and foreign players, the Company continues to be the country’s leading Lead Acid Storage Battery manufacturer,” he added.