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Informist, Monday, Nov. 4, 2024

 

--Exide Ind Jul-Sept net profit INR 2.98 bln 

--Analysts saw Exide Ind Jul-Sept net profit INR 3.17 bln 

--Exide Ind Jul-Sept net profit INR 2.98 bln vs INR 2.87 bln year ago 

--Exide Ind Jul-Sept revenue INR 42.67 bln vs INR 41.07 bln year ago 

--Exide Ind Apr-Sept net profit INR 5.77 bln vs INR 5.29 bln year ago 

--Exide Ind Apr-Sept revenue INR 85.80 bln vs INR 81.79 bln year ago 

 

By Akshay V. Johnson

 

MUMBAI – Exide Industries reported lower-than-expected earnings for the September quarter. The company saw mid-single digit growth in net profit, driven by cost optimisation, and similar growth in revenues, owing to healthy demand in the automotive and industrial segment. The company reported a net profit of INR 2.98 billion for the September quarter, up 3.8% from INR 2.87 billion a year ago. Analysts had estimated the company's net profit at INR 3.17 billion. The growth in net profit in the latest quarter was the lowest in six quarters. 

 

The company reported a net revenue of INR 42.67 billion for the September quarter, up 3.9% from INR 41.07 billion a year ago. Analysts had estimated the company's net revenue at INR 44.69 billion. The company's revenue growth for the quarter was also the lowest in six quarters. 

 

Sequentially, the company's net profit rose 6.5%, but revenue fell 1.1%. The company's other income for the September quarter was INR 528 million, up 34.8% on year.

 

For the September quarter, the company reported total expenses of INR 39.21 billion, up 4.3% from INR 37.61 billion a year ago. Exide Industries' cost of materials consumed was INR 30.85 billion in Jul-Sept, up 4.6% from INR 29.50 billion a year ago. The company reported other expenses of INR 5.95 billion in Jul-Sept, up 10.5% on year. The company's employee benefit expense rose 4.5% to INR 2.68 billion and depreciation and amortisation expenses were up 1% at INR 1.27 billion.

 

For Apr-Sept, the company reported a net profit of INR 5.77 billion, up 9.2% on year. Its revenue was INR 85.80 billion, up 5% on year.

 

Exide Industries posted earnings before interest, tax, depreciation, and amortisation of INR 4.84 billion for the September quarter, up marginally from INR 4.83 billion in the year-ago quarter. The company's EBITDA margin fell to 11.3% from 11.8% in the year-ago quarter. The company posted EBITDA of 9.78 billion for Apr-Sept, up 7% from 9.15 billion in the year-ago period.

 

"Efficient working capital management along with current profitability levels enabled us to maintain our track record of generating positive cashflows," the company said in a press release. "Our balance sheet remains comfortable with zero debt and high net worth."

 

In the September quarter, the company saw robust demand from the two-wheeler and four-wheeler market, leading to double-digit growth in the segment, the company said, adding that the demand momentum was also strong in its industrial-uninterruptible power supply and solar businesses. However, demand was softer in the home-uninterruptible power supply business due to the early onset of monsoon, the company said. Due to excess channel inventory, the company saw subdued demand from original equipment manufacturers in the automobile industry, the company said.

 

In Apr-Sept, the company's net cash inflow from operating activities was INR 7.26 billion, down from INR 14.91 billion in the year-ago quarter. The net cash outflow from investing activities was INR 6.50 billion, down from an outflow of INR 13.24 billion in the year-ago period. The company's net cash outflow from financing activities was INR 1.94 billion, down from an outflow of INR 2 billion in the year-ago period. On Monday, shares of the company closed at INR 445.05 on the National Stock Exchange, down 3%.  End

 

Edited by Avishek Dutta

 

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