Exide Industries is moving from strength to strength, and posted its new 52-week high of Rs 104.20 subsequent to the announcement of bonus.

The company's bonus announcement pleased market players as it proved better than expectations.

Monday, the scrip continued its upward flurry hitting Rs 103.55 (up 9%) by 11:35 IST. The scrip of the Kolkata-based batteries major registered substantial volumes of 58,093 by then. In five sessions, the scrip of Exide has risen 38% from Rs 75.10 on 17 April 2004 .

The company last week announced a 1:1 bonus, even better than market expectations of a ratio of 1:2 or 2:5.

Impressive fourth quarter as well as full year results by the company for the period ended 31 March 2003 have also generated interest in the scrip.

For Q4, the company posted a 118.7% rise in net profit to Rs 17.02 crore on a 11.3% increase in total income to Rs 240.67 crore (Rs 2.4 billion). While for FY 2002-03, the company recorded a 66.5% increase in net profit to Rs 52.33 crore on a 11.55% rise in total income to Rs 879.91 crore (Rs 8.79 billion).

On a consolidated basis, for FY 2002-03, the group posted an 80% increase in net profit to Rs 55.59 crore on a 12% rise in total income (net of excise) to Rs 925.41 crore (Rs 9.25 billion).

The board of directors has recommended a dividend of 40% (ie Rs 4 per share on a face value of Rs 10 per share) for the financial year ending 31 March 2003, subject to approval of the shareholders at the ensuing AGM.

The company also issued a guidance stating that the future would much depend on the economic environment in the country and, in this respect, the signals are definitely positive. The differential of customs duty on import of lead vis-à-vis finished batteries has been maintained in the current budget and the company hopes that the government further reduces the duty on lead so that the domestic battery industry can operate on a level playing field.

Exide Industries is a major player in the original equipment market, and enjoys close to 50% market share in the Rs 2,000-crore (Rs 20 billion) Indian lead-acid battery market. The automotive segment plays a crucial part in EIL's fortunes, since nearly 60% of the company's revenues come from this segment alone.

The company's performance has improved over the last few months on the back of a recovery in various segments of the automobile sector, including commercial vehicles. Anticipating a spurt in business due to the Golden Quadrilateral project, Exide has undertaken a new project called Project Highway. As per the project, the company has started actually fitting a battery on vehicles as against the usual practice of putting the battery in the hands of the dealer, who then enjoyed the liberty of selling the battery wherever he deemed fit.

The company is also, of late, undertaking a shift from purely the industrial sector to households and the FMCG sector.

BSE code: 500086