The company posted a very disappointing set of numbers and little wonder that the stock tanked big time yesterday, to a 2-year low on the bourses. The company, for Q3FY14 posted a 25% (YoY) decline in net profit at Rs.77 crore and net revenue fell from Rs.1462 crore to Rs.1301 crore.  Very poor demand in the auto sector and also the industrial battery section pushed down the earnings for the company. Thanks to the adept cost management, the company managed to keep a tight control on operating costs, thereby arresting further fall in net profit.

The company stated that in the replacement market, the demand for heavy duty and light commercial vehicles including passenger cars used for commercial application (taxi) remained subdued. Automobile OEMs (original equipment manufacturers segment) had a de-growth and this affected the company. Raw material prices had declined and it was perceived that the company might do better but then the low offtake and volatile rupee played spoilt sport.