Case Study Exide Battery
Case Study Exide Battery
Case Study Exide Battery
Future prospects
It is anticipated that local organized battery industry will face tough competition due to capacity
expansion of existing battery plants, new entrants, inflow of imported batteries and changing
market dynamics. Profitability in next year 2020 will also be adversely impacted owing to
increase in prices of basic raw materials, utilities, labour charges and devaluation of Pak Rupee.
Nevertheless the top management is determined to avail full benefits of the opportunities by
continued focus on quality, productivity, cost control and after sales service to improve its
competitiveness.
Dry maintenance free battery of Exide along with newly developed batteries for UPS and solar
systems must improve their market share. NMK market analyst is of the opinion that top
management of Exide needs to think strategically and tap the opportunities which exist in battery
technology for the future.
Lead-acid battery has not advanced in decades but the world is close to power revolution.
Rechargeable lithium battery which is used in normal smart phones is now being used in hybrid
and electric cars has the potential to provide enormous growth to the company in future.
Exide Pakistan has not even started thinking about it.
Toyota has recently announced that it has developed solid state lithium ion battery which can be
recharged and discharged in minutes. In order to capitalize on solar and wind energy potential
you will need lot of batteries in future.
Exide Pakistan has created huge reserve of Rs 3.5 billion because of high profitability in
previous years now needs to be utilized in R& D to create exciting future for the company
Profit & Loss Statement of Exide Pakistan
Rs in 000
Year 2019 Year 2018
Sales 9,506,579 12,301,411
Cost of sales (8,534,355) (10,944793)
Gross Profit 972,224 1,356,618
Selling & Distribution expense (938232) (868,292)
Admin & general expense (121,858) (109,280)
Other income 18,519 12,000
Other operating expenses (82,385) (54,826)
Operating (loss)/profit (151,732) 336,220
Finance cost (259,106) (141,258)
(Loss)/profit before taxation (410,838) 193,962
Taxation (93,673) (172,341)
Profit after taxation (504,510) 21,621
Loss/earning per share (64.94) 2.78