Exide Industries has reported nearly 76 per cent drop in net profit to Rs 51 crore in July-September 2011 from approximately Rs 213 crore during the same period in 2010.
The decline in profit was attributed to drop in volume sales for both automotive and industrial batteries coupled with Rs 15-crore loss on depreciation of rupee against dollar.
90% interim
According to a company press release issued on Thursday, the board of directors of Exide has also approved 90 per cent interim dividend to its shareholders.
When compared to the first quarter of this fiscal, the drop in net profit is nearly 69 per cent from Rs 163 crore in April-June 2011.
According to the company, sales volume of automotive segment (including both OE and replacement sales) and industrial battery segment were down by six per cent and five per cent respectively.
Two-wheelers to the rescue
The fall in volume sales could have been steeper had two-wheeler batteries did not come at the rescue. “Two-wheeler battery sales grew 30 per cent in volume,” the company said.
In value terms, net sales increased by 4 per cent to Rs 1,127 crore in the last quarter as against the corresponding quarter of the previous year.
Power crisis a boon
Meanwhile, the company is hopeful of putting up a better show in the third quarter, primarily riding on higher inverter battery sales triggered by the nation-wide power crisis and over 30 drop in lead prices to $1,900 a tonne in last couple of weeks.
“The third quarter should be better as replacement sales (the prime profit churner) of automotive batteries are improving. We are also hopeful of a resolve of the labour unrest at Maruti pushing up the OE sales,” Mr P.K. Kataky, Director (automotive) of Exide, told Business Line .
The company's share price fell by 7.46 per cent to Rs. 121.55 at BSE on Thursday.