Performance for the quarter ending on March 31, 2011
Major auto ancillary industry Exide industries reported their financial results for the fiscal year ended March 31 2011. The Company registered net sales for the quarter ending March, 2011 at Rs. 1248.05 crore a rise of 21.14% from Rs. 1030.28crores registered in corresponding quarter last year.
The Operating profit of the company increased by 7.52% to Rs 233.86 crore. The PAT during the quarter inclined by 21% and stood at Rs 163.67 crore compared to the corresponding quarter in the previous year. The expenses went up by around 24.78% to Rs 1014.19 crore from Rs 812.78 crore in the corresponding quarter.
The employees cost and raw material costs significantly added to the expenditure. For the quarter under review, interest expenses declined by 68.34% to Rs 122.95 as company cleared some of its loan. Following the same trend, depreciation increased to Rs 22.68 crore compared to Rs 20.83 crore.
Exide Industries at its meeting held on April 27, 2011, has recommended payment of a final dividend of 60% (Re. 0.60 per share on face value of Re. 1/- per share) for the financial year ended March 31, 2011, subject to approval of the shareholders at the ensuing Annual General Meeting.
Consequently, the total dividend for the year ended March 31, 2011 including the interim dividend of 90% (Re. 0.90 per share on face value of Re. 1/- each) paid during the year amounts to 150% (Rs. 1.50 per share on face value of Re. 1/- each)
Performance for the Fiscal Year 2011
The Company reported its operating income at Rs.4577.50 crore that increased by 20.54% as against Rs. 3797.35 crore in the corresponding period last year.
In line with this, operating expenses grew exponentially by 26.52% to Rs. 3674..83 crore from Rs. 2904.58 crore mainly due to rise in raw material cost, employee expenses and other expenses by 32.51%, 25.59% and 27.99% to Rs. 2946.88 crore, Rs. 282.85 crore and Rs. 645.95 crore respectively.
On account of higher increase in operating expenses than in sales, operating profit grew marginally by 1.11% to Rs. 902.67 crore from Rs. 892.77 crore. While the group has posted a net profit of Rs 6188.20 million for the year ended March 31, 2011 as compared to Rs 4935.20 million for the year ended March 31, 2010.
Further, interest expense decreased by 44.31% to Rs. 5.73 crore, while depreciation and taxation increased by 3.47% and 0.18% to Rs. 83.45 crore and Rs. 274.00 crore respectively. After adjusting for all financial charges, net profit inclined by 24.07% to Rs. 666.36 crore from Rs. 537.09 crore.
Finally, OPM declined by 1612 basis points to 19.72% and NPM inclined by 142 basis points to 14.31%. The company has at many times faced supply shortage on ground of capacity constraints. So, the company had a lot of expansion plans lined up.
Also, to avoid any shortages in supply and to cut down costs on lead, it has acquired and entered into strategy alliance with various lead smelters and recycling businesses in India.
Looking at the balance sheet of the company as on 31March 2011,the company registered a rise in reserve ands surplus from Rs.1831.50crore to Rs.2300.08,i.e. a growth of 25.58% while Long term loans showed a decline by 40.48% from Rs. 174.13crores to Rs. 103.63crores.
Company showed tremendous increase in its fixed assets to Rs. 1037.85crore from Rs.836.72crore while current asset and current liability showed at Rs.1665.26crores and Rs.994.52crores respectively.