Shares of Exide Industries Ltd. gained as much as 7% on Wednesday, November 4, in response to its September quarter results, which were strong on both the profitability and operational front on a year-on-year basis.
The company’s revenue increased by 21.3% from the same quarter last year to ₹5,292 crore from ₹4,364 crore earlier.
Net profit for the period grew nearly 65% to ₹287 crore from ₹174 crore last year. Strong operating performance and revenue growth contributed to the company’s profit growth, despite a decline in other income and a surge in other expenses.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹561 crore, a growth of 43.5% from the year-ago period, while margins expanded by 200 basis points to 11% from 9% last year. The management cited cost optimization initiatives along with calibrated prices increases and volume growth as the key factors behind the expansion in margins during the quarter.
Exide Industries attributed the growth during the quarter to healthy demand, continued benefits of GST 2.0, a lower base and stronger execution of the “One Exide” operating model.
Input costs though, continued to remain elevated due to the geopolitical situation. On a sequential basis, the full benefits of softer Lead LME prices and antimony prices could not be realized due to a weaker currency.
The company witnessed double-digit growth across key businesses, with the automotive OEM business growing over 25% year-on-year for the fourth straight quarter. What also grew for the fourth straight quarter in double digits was the two and four-wheeler replacement business, led by steady aftermarket demand.
Home Inverters and Solar delivered 20%-plus year-on-year growth for the second quarter in a row on a lower base. During the quarter, Exide also signed a long-term strategic co-operation agreement with ExCom Energy Solutions GmbH, Germany, to grow its industrial battery and energy storage business across Europe.
Shares of Exide Industries are trading 5.6% higher after the results announcement at ₹365.5. The stock has declined 10% in the last one month.
Exide Industries Q2 Results: Stock jumps 7% on strong operating performance, 65% profit growth