Exide Industries Jul-Sep consolidated net profit down 13.7%, revenue up 17.9%
Exide's standalone net profit increased 3.75% year-on-year to ₹297.77 crore.
Exide Industries, a major player in the storage battery sector, reported a year-on-year decline of 13.66% in its consolidated net profit for the second quarter of the fiscal year, amounting to ₹233.40 crore compared to ₹270.32 crore in the same period last year.
Despite this, the company's revenue from operations grew by 17.95% year-on-year, reaching ₹4,450 crore, up from ₹4,371.52 crore in the corresponding period last year. Expenses during this time increased by 2.82% year-on-year, totaling ₹4,157.63 crore.
On a standalone basis, Exide's net profit increased by 3.75% year-on-year to ₹297.77 crore, with revenue from operations in Q2 FY25 rising by 3.91% year-on-year to ₹4,267.30 crore. The company reported EBITDA and PBT margins of 11.3% and 9.4%, respectively, compared to 11.8% and 9.4% in the same quarter of the previous year.
Effective working capital management and current profitability levels allowed Exide to continue generating positive cash flows, and the balance sheet remains strong, with zero debt and a high net worth.
For the quarter ending September 30, 2024, there was strong demand in the two-wheeler and four-wheeler replacement markets, resulting in double-digit revenue growth. Demand for industrial-UPS and solar solutions also showed robust momentum during this period. However, excess channel inventories among auto OEMs dampened demand in that sector, Exide said.
During this quarter, Exide Industries invested ₹250 crore as equity in its wholly-owned subsidiary, Exide Energy Solutions (EESL), and an additional ₹100 crore in October, bringing the total equity investment in EESL to ₹2,852.24 crore.
Commenting on the results, Avik Roy, MD & CEO, said that the company achieved EBITDA and PBT margins of 11.4% and 9%, respectively, in the first half of the year. He emphasized that efficient procurement and cost optimization efforts have contributed to stability in operating performance, despite the challenges posed by high commodity prices.
Looking ahead, he expressed a positive outlook for the business, noting that commodity prices have begun to ease, which is expected to bolster profitability.
RELATED ARTICLES
Tata Motors Announces Price Hike for CVs as Costs Continue to Rise
This follows an earlier increase of up to 3% in prices of Tata Motors' passenger vehicles implemented in January.
Dr. Lakshmi Venu Appointed as Vice Chairman of TAFE
Tractors and Farm Equipment Limited (TAFE) has named Dr. Lakshmi Venu as its Vice Chairman. With experience in farm mech...
RKFL to Raise Steel Casting Capacity to 120,000 tonne
Chaitanya Jalan, the third generation in the family, is driving ambitious growth and innovation plans of Kolkata headqua...