Exide Inds posted a 70.63 per cent growth in net profit from Rs 23 crore in fiscal 1998 to Rs 39.86 crore for the year ended March 31, 1999. The sharp rise in net profit is despite the fact that interest and provision for tax have risen considerably. The surge in net profit is mainly volume driven as result of the takeover of Standard Batteries.

Turnover registered a 46.79 per cent jump to Rs 655.32 crore. Better expenditure management has yielded rich dividends for the company. Operating profit has risen by 69.21 per cent from Rs 76.53 crore to Rs 129.5 crore. However, interest cost shot up by 75.61 per cent to Rs 48.82 crore from Rs 27.8 crore.

In fact, for the fourth quarter, the company's performancehas been very impressive. The company posted a net profit growth of 97 per cent from Rs 5.29 crore to Rs 10.44 crore. The 97 per cent jump in net profit was mainly due to a lower growth in interest cost. For the full year 1999, profit before tax rose by almost 74 per cent from Rs 26.11 crore to Rs 45.36 crore.

On an expanded equity base of Rs 36 crore, EPS works out to Rs 11.4. This discounts the current market price of Rs 215 by a multiple of 18.85. The stock could be more attractive once the stock market see a further fall due to the current political stalemate. For the fiscal 1999, the company's reserves rose from Rs 135 crore to Rs 220.32 crore.