Karachi February 1 2022: Exide battery management anticipates that indigenous organized battery industry will face competition due to capacity expansion of existing battery plants and the changing market dynamics, as per company report submitted at Pakistan Stock Exchange.
It is projected that the profi¬tability in the remaining period of the year will be affected due to increase in prices of basic raw materials, utilities, wages and markup rates, if the corresponding increase in the selling prices are not absorbed by the market. Nevertheless, company management is determined to avail full bene¬fits of the opportunities by continued focus on quality improvement, productivity, cost control and after sales service to improve its competitiveness and market share.
Company posted loss of PKR 40.66 million during the period from October 2021 – December 2021 due to lower sales.
Production activities were effectively planned and adjusted to cater to the market demand both in terms of quantity and quality. Stress on quality control at all stages of production process was implemented with great vigor for further strengthening quality standards of the products of your Company.
Net Sales turnover of the Company for the third quarter under review decreased to PKR 3.004 billion down by 10.81 percent as compared with PKR 3.368 billion during the same period last year. Cumulative sales for the nine months increased from PKR 8.166 billion to PKR 10.899 billion up by 33.47 percent as compared to corresponding period of last year on account of better sales volume.
Gross pro¬fit for the quarter under review increased from PKR 323.47 million to PKR 374.15 million up by 15.67 percent on account of improved margins.
Selling and distribution expenses increased by 31.70 percent as against decrease in net sales revenue of 10.81 percent. Operating profi¬t of PKR 72.05 million recorded as against PKR 84.66 million in the corresponding period of last year. Financial charges increased from PKR 38.93 to PKR 69.39 million on account of increased borrowings and markup rates. Loss after tax was PKR 40.66 million as compared to profit of PKR 1.9 million last year. Loss per share recorded as PKR 5.23 as against profit of PKR 0.25 last year.
