Exide Ind net up 58.28% for Dec`07 quarter

Storage battery maker Exide Industries posted 58.28% increase in net profit to Rs 551.60 million for the quarter ended Dec. 31, 2007 as compared to Rs 348.50 million for the quarter ended Dec. 31, 2006.

Net sales for the quarter climbed 57.73% to Rs 7,219.20 million as compared to Rs 4,577.00 million in the corresponding quarter, a year ago.

Total Income increased 59.18% from Rs 4,536.80 million for the quarter ended Dec. 31, 2006 to Rs 7,221.90 million for the quarter ended Dec. 31, 2007.

The earnings per share (EPS) rose 48% to Rs 0.74 for the December 2007 quarter as against Rs 0.50 for the corresponding quarter, a year ago.

	Quarterly Standalone (Rs in mn)
	Dec 07 (03)	Dec 06 (03)	%Change
Net Sales	7,219.20	4,577.00	57.73
Net Profit	551.60	348.50	58.28
EPS (Rs)	0.74	0.50	48

An improved sales mix and significant contribution from the R&D towards savings in material cost underpinned satisfactory profit margins.

``Even though lead prices softened in the month of December, the benefit of such softer prices will be reflected only in the next quarter,`` said TV Ramanathan, managing director and CEO of the company.

``While there was encouraging buoyancy in the replacement market, the off take from both 4-wheeler and 2-wheeler OEM (original equipment market) was significantly below our expectations at the beginning of the year,`` Ramanathan added.

In automotive battery segment, Exide has already been chosen as a preferred supplier of batteries for Tata Motor`s new product Nano.

``Our in-house R&D Centre was closely associated with the development of a most suitable battery for the Nano vehicle from the very beginning when the vehicle concept was frozen. However, off take for such batteries will start from the next financial year, when the new vehicle hits the market,`` Ramanathan said.

In the industrial battery segment, which constitutes 40 per cent of the company`s turnover and profit, growth from the telecom sector was particularly spectacular. In fact the top line growth in telecom segment was 94%.

Exide is in the midst of a rights issue, which opened on Dec. 28, 2007 and will close on Jan. 28, 2008. The issue price is Rs 30 and the offer is being made in the ratio of one share for every 15 shares held.

Shares of the company gained Rs 8.25, or 10.24%, to trade at Rs 88.8. The total volume of shares traded was 4,975,471 at the BSE. (1.08 p.m., Monday)