Exide Industries, the country’s largest car battery maker, reported an over 80 per cent drop in standalone net profit to Rs 44 crores for the first quarter ended June 30. Net profit in the corresponding period last year stood at Rs 224 crores.
Net Turnover for the quarter ended June 30, 2020, was down 46 per cent at Rs 1,547.62 crores as compared to Rs 2,779.25 crores during the quarter ended June 30, 2019.
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Mr G Chatterjee, MD & CEO, said that the onset of COVID-19 pandemic and the consequent lockdowns to curb its spread caused severe disruption in manufacturing, supply chain, and sales and distribution operations of the Company. This has caused an adverse impact on its sales as well as profitability during the quarter.
The Company said in its press release that “The manufacturing operations were resumed only in mid-May and thereafter scaled up. The Company responded with agility, speed and resilience, together with a structured process of proactive planning, to operate in the ‘new normal’.“
Exide Industries is focussing on Cost Control and Technology up-gradation as strategies to improve the bottom-line.
In conclusion, the company is hopeful as OEM (Original Equipment Manufacturer) demand for automotive batteries remained subdued, there was a surge in demand for trade sales of automotive and UPS batteries. Business volumes of other institutional segments are gradually picking up.
You can view Exide Industries financial results here.