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News Heading : Exide maintains steady growth

Kolkata, January 12, 2009: Exide Industries Ltd, the country’s largest lead acid storage battery manufacturer, marginally improved its profit before tax for the quarter ended December 31, 2008. At its board meeting held today to consider the unaudited financial results for the third quarter of the current financial year, the company reported a profit before tax of Rs 86 crore as against Rs 83 crore earned during the same period of the previous financial year. The net sales for the quarter of Rs 789 crore shows a year on year (YOY) growth of 9 per cent. For the nine month period of the current financial year 2008-09, the net sales of Rs 2598 crore and the net profit of Rs 216 crore reflected a YOY growth of 26 and 15 per cent respectively. The board also approved the payment of an interim dividend of 40 percent to the shareholders. Commenting on the Q3 performance, Exide’s Managing Director and Chief Executive Officer, Mr T.V. Ramanathan said, “stringent austerity measures introduced from October 2008 and reduced reliance on imported raw materials coupled with improved sales mix enabled the company to fully negate the adverse impact of significant reduction in off take from OE customers in the automotive segment.” Commenting on lead prices, Mr Ramanathan said, “the recent softening of lead prices in the international markets hasn’t helped the company much due to depreciation of the rupee against dollar. Hopefully by the end of the next quarter the company will get some benefit provided lead prices don’t become volatile again and the rupee somewhat strengthens.” Commenting about the future, Mr Ramanathan said, “a strong balance sheet and a lower debt/equity ratio should enable the company to sustain strong cash flows and thus meet the challenges arising from lower buoyancy in the auto OE market in the near term.” In the automotive segment in Q3, despite the slow down of OE market, the market shares were retained. The steady growth in the replacement market enabled the company to secure an overall volume growth of 8 per cent. In the industrial battery segment the sales volume growth in Q3 was 17%. The sales volume in the telecommunication segment is expected to be less buoyant in the ensuing quarters. However, we expect steady volume growth in both traction and UPS home segments. “Our continued focus on austerity measures and improved operational efficiencies in all our factories and efficient management of inventory will underpin the company’s strategy to counter the uncertainties now built up in the Indian economy,” Mr Ramanathan said.

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