Amara Raja, Exide Industries post higher net profitJune 26th, 2008 - 11:07 pm ICT by IANS
Chennai, June 26 (IANS) The city-based Amara Raja Batteries Ltd has declared net sales of Rs.10.8 billion for 2007-08, up from Rs.5.95 billion of the previous fiscal. The company’s net profit was around Rs.943 million for the period under review compared to Rs.470.44 million in 2006-07.
Another leading battery manufacturer, Exide Industries Ltd, posted net sales of Rs.28.44 billion for fiscal 2008 against Rs.18.7 billion of the previous fiscal.
Exide’s net profit for the period under review was Rs.2.50 billion, up from Rs.1.55 billion in the previous year.
Amara Raja officials said their strategy to pass on the high lead prices to customers helped the company post higher profit.
Amara Raja managing director Jayadev Galla told IANS: “It is true that the prices have come down to $2000 per tonne now from $3000 per tonne in the previous quarter. However the prices are expected to go up as the lead consumption has increased and with China clamping down lead exports.”
The company has attributed 50 percent of the topline growth to the price hike.
However Galla expressed concerns about the volatile economic mood of the country. “We are cautiously optimistic about fiscal 2009. Though things may not seem bright, we are confident. There will be volume growth but the topline might be affected owing to the lead price volatility,” he said.
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