Indian lead-acid battery maker Exide Industries is focusing on ‘cost control’ and ‘technology upgradation’ to improve the bottom-line after COVID-19 caused a distribution in the supply chain.
The company announced on 3 August that its net turnover for the second quarter of the year ending June 30, was down Rs.1,232 crore ($16 million) compared to year-on-year figures (Rs. 2,779.25 crore or $37 million).
Profit after tax was Rs. 43.95 crore ($5.8 million) for the second quarter of the year compared to Rs. 224.29 crore ($30 million) for the same period last year, the company announced in a press release.
Gautum Chatterjee, MD & CEO at Exide Industries, said the onset of the 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,” he said.
The Kolkata-based firm’s manufacturing operations were resumed in mid-May and thereafter scaled up.
A company statement said it was taking a ‘series of concerted actions’ to realign the distribution infrastructure in response to the multiple challenges arising out of restricted mobility of people and goods, curbs on working hours and outlet operations.
During the quarter, while OEM demand for automotive batteries remained subdued, there was a surge in demand for trade sales of automotive and UPS batteries, said Exide, along with business volumes of other institutional segments gradually picking up.