Exide Industries (500086) Q4 98/99 earnings summary

Executive summary

• FY99 sales crossed Rs 800 crore, rising 43% YoY despite recession in automotive and infrastructure markets; results included a full year of operations from acquired Standard Batteries facilities.

• Profitability strengthened substantially, with PAT reaching Rs 3,985.83 lakh; management emphasized cost control, productivity, product development and global competitiveness.

Financial highlights

• Sales were Rs 8,168.45 million versus Rs 5,651.86 million in FY98; figures are not directly comparable because acquired units contributed 12 months versus 1.5 months previously.

• PBT was Rs 4,535.83 lakh versus Rs 2,610.83 lakh; PAT was Rs 3,985.83 lakh versus Rs 2,335.83 lakh.

• EPS was Rs 11.40 versus Rs 8.10; proposed equity dividend was 35%, with Rs 3.50 per share recommended.

• Other income was Rs 96.51 lakh; exceptional items were Rs 135.35 lakh, including VRS costs, an earlier-year insurance claim write-off, foreign-exchange fluctuation and ERP/Y2K expenses.

Outlook and guidance

• Management expected slow economic growth in FY00 and called for continued investment in technology, quality and core competencies amid tariff reductions and greater global integration.

• The strategy aimed to strengthen the global position by integrating technology, quality and operational capability; Y2K compliance work was targeted for completion by 31 December 1999.