Lead-acid battery major Exide Industries has reported 38 per cent rise in net profit at approximately Rs 134 crore in the December quarter against the same period last year. The higher profit came against marginal 2 per cent drop in net sales to Rs 1,521 crore.
While the demand scenario remained lacklustre, the profit high profit margin was generated out of over 3 per cent reduction in the cost of raw materials and better inventory management.
“There was no significant improvement for the automotive, OEM, and industrial battery, including demand for inverter battery as well as for power, telecom and solar battery, during the third quarter. However, growth in automotive and motorcycle battery replacement sales continued during this quarter,” company managing director and CEO P K Kataky said in a press release.
“Technology upgrade and cost control remain important part of the company’s strategy to improve the bottom-line,” he said.