Thursday, July 18, 2013: Exide Industries has been closely monitoring the volatility of the Indian rupee and said that prices may again be increased if the value dips below 61 as against the dollar. According to P K Kataky, the managing director of the company, according to the current prices, Exide is protected up to an exchange rate of Rs 61 for every dollar but if the value continues to depreciate, another price rise for several products from the industry is evident. The company, however, said that the Rs 280 crore 2013-14 capex plans will continue to be on track.
The Kolkata-based Exide Industries had recently hiked its prices following the rupee depreciation to an all time low of 61.20 last week. The prices had been increased by 5-6 per cent. While the industry depends highly on the import of lead, it says that though the lead priced have softened a bit in the last couple of months, the physical delivery and export continues to demand high premium. The capacity utilization has further reduced to 72-75 per cent with a slowdown in the OEM (Original Equipment Manufacturer) market.
Kataky added that the company doesn’t forecast a revival of the market soon. The depreciating rupee and growing cost of inputs have highly impacted the operating margins of the company. In the April-June quarter, the margin stood close to 16 per cent and the company has been trying hard to maintain the level. Exide Industries had earlier posted a net profit increase of 4.44 per cent in the first quarter of 2013-14.
