Karachi: Exide Pakistan Limited has reported a decline in net sales revenue for the first quarter ended June 30, 2025, reflecting a challenging environment despite broader economic improvements in Pakistan. According to the company's chairman, the un-audited financial statements reveal a 14.9% drop in net sales, from Rs. 8.286 billion to Rs. 7.049 billion, primarily due to a reduction in sales prices.
The broader macroeconomic landscape has shown signs of recovery, with headline inflation reaching a multi-year low by June 2025. Foreign exchange reserves were bolstered by a current account surplus of US$ 2.1 billion, marking the first surplus in fourteen years. The fiscal deficit narrowed significantly, supported by a record primary surplus. However, the trade deficit widened by 9% to US$ 26.3 billion, driven by a 4.7% increase in exports and a 6.6% rise in imports.
The automotive sector, a key industry for Exide Pakistan, experienced robust recovery during FY-2025. Despite this sectoral growth, Exide's sales volumes suffered a decline, with the tractor segment facing a significant downturn of 36.4%. Production activities have been strategically aligned with market demands, maintaining a focus on quality control to enhance product standards.
Profitability metrics for Exide Pakistan indicated a downward trend, with gross profit decreasing from Rs. 1.543 billion to Rs. 1.033 billion, attributed to a decrease in revenues and lower margins. Operating profit stood at Rs. 595 million, compared to Rs. 982 million in the same period last year. Financial charges decreased, reflecting lower markup rates, but profit before tax fell to Rs. 366.12 million from Rs. 711.98 million. Profit after tax also declined to Rs. 223.34 million from Rs. 434.31 million, resulting in earnings per share of Rs. 28.75, down from Rs. 55.91 last year.
According to information available from the Pakistan Stock Exchange (PSX), Exide Pakistan Limited operates within the designated market category of the automotive battery industry. The company is facing potential future headwinds due to increased industry capacity and diminishing consumer purchasing power, which may impact profitability.
Exide Pakistan remains committed to enhancing product quality and improving productivity to maintain competitiveness. The company acknowledges the support of stakeholders, including employees, shareholders, and partners, as it navigates the complex market dynamics.