Exide net up 42%

Industrial and auto battery maker Exide Industries Ltd has reported a 42 per cent rise in net profit to Rs 62 crore for the second quarter ended 30 September 2007 from Rs 43 crore in the corresponding period last year.

Sales also increased 48 per cent to Rs 840 crore in this period as compared with the corresponding period in the previous year.

Net turnover surged to Rs 668 crore in the quarter from Rs 451 crore in the corresponding last year.

This was achieved mainly through increases in price, volume and the use of cheaper alternative raw materials, even as the price of lead, the principal raw material, rose sharply.

Today, lead is quoting at $3,900 a tonne against $1,945 in April last year.

"Lead price in the global markets continues to remain a source of serious concern for us. However, with a significant portion of our business covered by a price fluctuation clause, we have ensured that the adverse effect is minimised," said T V Ramanathan, managing director and chief executive officer.

He said that in an effort to reduce its reliance on imported lead, the company had decided to invest in lead smelting capacities.

Exide shares lost 2.5 per cent to close at Rs 67.45 on the Bombay Stock Exchange on Friday after touching a 52-week high of 74.90 in intraday trade.