Earnings Outlook
Exide Ind Jul-Sept earnings seen strong on demand recovery
This story was originally published at 17:05 IST on 31 October 2024
Register to read our real-time news.Informist, Thursday, Oct. 31, 2024
By Akshay V. Johnson
MUMBAI – Exide Industries Ltd. is expected to post strong earnings for the September quarter driven by cost optimisation and a recovery in the demand for two-wheelers and in the industrial segment, according to analysts. Exide Industries is expected to report a net profit of INR 3.17 billion for Jul-Sept, up 10.45% on year, according to the average of estimates from nine brokerages. Of the nine estimates, the highest estimate for net profit was given by Anand Rathi Share and Stock Brokers Ltd. at INR 3.42 billion and the lowest was given by Elara Securities (India) Pvt. Ltd. at INR 2.59 billion.
The company is expected to report a revenue of INR 44.69 billion for the September quarter, up 8.8% on year, according to the estimates. Among estimates for revenues, the highest of INR 45.72 billion was given by Sharekhan Ltd., and the lowest of INR 43.94 billion was given by Kotak Institutional Equities. Exide Industries had reported a net profit of INR 2.80 billion for the June quarter on revenues of INR 43.13 billion.
Prabhudas Lilladher expects the company's net profit to rise 17.3% on year and revenues to grow 9.4% on year, led by a rise in two- and three-wheeler sales volumes. However, Motilal Oswal expects the company's revenue to grow 8% on year, driven by a healthy recovery in two-wheeler demand. The brokerage said it has also factored in the improvement in sales of invertor batteries in the latest quarter due to spillover effect from the first quarter.
The company's revenue is expected to increase 7% on year in the September quarter led by a high-single digit on-year increase in the industrial segment, mid-single digit on-year growth in volumes of the replacement segment, and double-digit on-year increase in volumes of two-wheeler original equipment manufacturer segment, Kotak Institutional Equities said.
The company's earnings before interest, tax, depreciation, and amortisation, or EBITDA, for Jul-Sept is expected to be INR 5.38 billion, according to the average of estimates from seven brokerages. An increase in price, cost optimisation, and a rise in volumes are the reasons behind Prabhudas Lilladher expecting the company's EBITDA margin to increase by 44 basis points in the September quarter. Due to the lag effect of a fall in lead prices in the last quarter of 2023-24 (Apr-Mar), the company's EBITDA margin should see an on-quarter expansion, Motilal Oswal said. Kotak expects the company's EBITDA margin to increase by 70 bps on year to 12.5% due to operating leverage benefits, favourable pricing, and cost reduction measures.
The company's progress in lithium ion manufacturing facility and customer tie-ups will be key indicators to look out for, Nuvama Institutional Equities said. On Thursday, shares of Exide Industries ended at INR 455.45 on the National Stock Exchange, down 2.1%.
The company will report its Jul-Sept earnings on Monday. End
Following are the Jul-Sept earnings estimates for Exide Industries based on reports compiled by Informist from nine brokerage houses: (in INR million)
Brokerage | Net Sales | Net Profit | EBITDA |
Anand Rathi Share and Stock Brokers Ltd. | 43,990.00 | 3,415.00 | -- |
Elara Securities (India) Pvt. Ltd. | 45,490.00 | 2,591.00 | 5,203.00 |
Kotak Institutional Equities | 43,941.00 | 3,264.00 | 5,483.00 |
Motilal Oswal Financial Services Ltd. | 44,352.00 | 3,039.00 | 5,211.00 |
Nomura Equity Research | 44,370.00 | 3,181.00 | 5,481.00 |
Nuvama Wealth Management Ltd. | 44,032.00 | 3,102.00 | 5,180.00 |
Prabhudas Lilladher Pvt. Ltd. | 45,173.00 | 3,367.00 | 5,515.00 |
Sharekhan Ltd. | 45,720.00 | 3,320.00 | -- |
YES Securities (India) Ltd. | 45,173.00 | 3,250.00 | 5,587.00 |
Average | 44,693.44 | 3,169.89 | 5,380.00 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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