Exide Industries (500086) Q4 96/97 earnings summary

Executive summary

• FY97 sales crossed Rs 500 crore, rising 42% despite uneven market conditions; PBT rose to Rs 36.04 crore and PAT to Rs 30.93 crore.

• Modernisation at three existing factories was completed, automotive battery capacity reached 2.8 million units, and the Hosur VRLA plant commenced production.

Financial highlights

• Sales were Rs 5,093.85 million in FY97 versus Rs 3,593.88 million in FY96; other income was Rs 26.91 million.

• Reported PBT was Rs 360.37 million versus Rs 219.12 million; PAT was Rs 309.28 million versus Rs 204.12 million.

• FY97 included Rs 13.54 million of VRS exceptional expense; excluding this charge, PBT before exceptional items was Rs 373.91 million.

• Directors recommended a 32% prorata dividend plus a 5% prorata special dividend, both subject to tax.

Outlook and guidance

• Import-duty reductions were expected to increase global competition; priorities included niche markets, technology and quality upgrades, and growth in India and export markets.

• Plans included expanding the Hosur VRLA range with batteries for railways, telecom and power stations, alongside advanced maintenance-free products for domestic and export markets.

• Discussions with VARTA explored long-term cooperation for DIN maintenance-free batteries, exports and phased indigenisation of glass-mat bonded separators.