Riding on its stringent cost-cutting drive and constant focus on the right product mix,

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leading auto battery maker Exide Industries notched up a 35 per cent rise in net profit and a 30 per cent surge in sales in the first quarter.

“Our continued focus on cost reduction and product mix is once again reflected in this quarter’s performance. The figures are satisfactory considering the continued volatility in raw material prices and foreign exchange rates even as competition from cheaper imports from neighbouring countries continued unabated,” said MD and CEO, T V Ramanathan.

The company’s gross sales stood at Rs 1,410 crore, up from Rs 1,084 crore during the same period previous year. The net profit stood at Rs 249 crore compared with Rs 191 crore. “The Indian market for batteries across segments is fast maturing and customers are becoming more quality rather than price conscious. This positive trend will continue and gain momentum in future to help technology focussed companies like Exide Industries,” Ramanathan said.

Also, its board approved in principle the buyout of Leadage Alloys India, a lead smelting unit, where Exide has 51 per cent. With this, Exide would have two wholly-owned smelting units for captive consumption to cater to its requirements of lead and lead alloys.

Besides, Ramanathan said, “To cater to the increasing demand and to consolidate our position as the world’s second largest two-wheeler battery manufacturer, we’ll start production at our new motorcycle battery plant at Ahmednagar in Maharastra.”