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Exide Industries Q1 net slides

Our Bureau

KOLKATA, July 11

EXIDE Industries has recorded a net profit of Rs 3.64 crore on gross sales of Rs 219.09 crore for the quarter ended June 30. Though gross sales showed an increase of 11.6 per cent from Rs 196.32 crore in the corresponding period the previous year, net pr ofit declined from Rs 7.03 crore.

According to a press release, the company reported an 8.5 per cent dip in operating profit, which stood at Rs 3.03 crore at the end of the quarter. Its profit before tax stood at Rs 4.74 crore, down from Rs 8.43 crore posted in the corresponding quarter of the previous year.

The setback in the performance of auto sales was chiefly due to the influx of low-cost imports which has affected the company's share, Mr S.B. Ganguly, Chairman of Exide, said. Dumping, which exerts a downward pressure on prices and profit margins, conti nues to take place through countries such as Bangladesh, Thailand, Taiwan and Saudi Arabia.

The company's industrial division has grown. This, however, was largely confined to the low-margin OE sector, which has further affected profitability for the quarter.

Exide hopes that the situation would improve in the next quarter, when the adverse impact of low-cost imports is hopefully contained as a result of action by the official anti-dumping authority. The latter has already taken action against China, Japan an d South Korea.