More Stories

Informist, Wednesday, Apr. 30, 2025

 

Please click here to read all liners published on this story

--Exide Ind Jan-Mar net profit INR 2.55 bln 
--Analysts saw Exide Ind Jan-Mar net profit INR 2.66 bln 
--Exide Ind Jan-Mar net profit INR 2.55 bln vs INR 2.84 bln year ago 
--Exide Ind Jan-Mar revenue INR 41.59 bln vs INR 40.09 bln year ago 
--Exide Ind to pay INR 2 per share dividend for FY25 
--Exide Ind appoints Manoj Kumar Agarwal as CFO effective Thu 
--Exide Ind to invest up to INR 12 bln in arm Exide Energy Solutions 
--Exide Ind FY25 net profit INR 10.77 bln vs INR 10.53 bln year ago 
--Exide Ind FY25 revenue INR 165.88 bln vs INR 160.29 bln year ago 
--Exide Ind Jan-Mar EBITDA INR 4.67 bln vs INR 5.16 bln year ago 
--Exide Ind FY25 EBITDA INR 18.93 bln vs INR 18.71 bln year ago 
--Exide Ind Jan-Mar EBITDA margin moderated to 11.2% on high input costs 
--Exide Ind FY25 EBITDA margin 11.4% vs 11.7% year ago 
 

 

By Avishek Rakshit

 

KOLKATA – Mounting costs and muted demand from original equipment manufacturers in the vehicle industry during Jan-Mar led Exide Industries Ltd. – the largest car battery manufacturer in India - to report a decline in its net profit for the first time in the past eight quarters. The operating profit suffered as well, in line with the Street's projections. 

 

During Jan-Mar, Exide reported a 10.3?cline in its net profit at INR 2.6 billion as against the Street's projection of INR 2.7 billion, although the revenue grew 3.7% on year to INR 41.6 billion, slightly higher than the Street's estimate of INR 41.1 billion. 

 

While demand in the battery replacement market for two-wheelers and cars remained buoyant during the quarter under review, helping Exide register a double-digit growth in its mobility business, the demand from original equipment manufacturers, who make cars, was tepid. Although Exide does not declare its revenue from battery sales to such vehicle assemblers and makers, and to consumers who replace the batteries, sector analysts estimate this vertical to account for over 70% of Exide's annual sales. 

 

The company faced headwinds from its industrial products division as well. Although its sales to the trade for industrial UPS (uninterruptible power supply) products performed well on account of increasing demand of critical power backup solutions in multiple sectors, sales of home UPS fell due to a weak season. On the other hand, the solar power battery business posted double-digit growth supported by various solarisation programmes from its consumers. 

 

The industrial infrastructure business performance improved sequentially in Jan-Mar as order inflow and execution picked up in sectors like power, railways, traction, and others. This business segment was affected since the last two quarters.

 

Given such tepid demand conditions, Exide also faced the challenge of mounting costs. Prices of raw materials such as antimony, went up significantly in the last six months, thereby impacting margins, Exide said in a statement. As a result, the company's earnings before interest, tax, depreciation, and amortisation declined 9.5% on year to INR 4.7 billion as against the Street's projection of INR 4.9 billion. The EBITDA margin moderated to 11.2% as well, Exide said. 

 

"Financial year 2024-25 was characterised by tough macroeconomic conditions, resulting in lower capex (capital expenditure) and investments across sectors. In this environment, our focus remained on delivering stable performance along with maintaining strong balance sheet and positive cash flow generation profile, thereby establishing our resilience and ability to navigate business challenges," Avik Roy, managing director and chief executive officer of Exide said in a statement. 

 

During 2024-25 (Apr-Mar), Exide's net profit increased 2.3% on year to INR 10.8 billion, and revenue rose only 3.5% on year to INR 165.9 billion. The EBITDA grew just above 1% to nearly INR 19 billion, but the EBITDA margin fell to 11.4% in FY25 compared to 11.7% in the year-ago quarter. 

 

"We expect overall demand scenario to improve going ahead and will continue to focus on driving sales and achieving cost efficiencies. Additionally, our year long program on cost excellence, organisational transformation and investment in manufacturing technology has started showing results from March onwards. In our lithium-ion cell manufacturing project, construction work is going on in full swing to ensure timely project completion. We intend to commercialise operations in FY26," Roy said. 

 

In FY25, Exide has invested around INR 10 billion in its wholly-owned subsidiary, Exide Energy Solutions Ltd. In the ongoing financial year, an additional INR 3 billion was infused. After the latest investment, the total equity investment Exide made in the subsidiary till day stands at over INR 36 billion. Exide said its board has decided to further invest another INR 12 billion in Exide Energy Solutions in one or more tranches.

 

The company's board declared a dividend of INR 2 per share. It also appointed Manoj Kumar Agarwal as its chief financial officer, effective from Thursday.

 

At 1441 IST, shares of Exide traded 4.2% lower at INR 354.4 on the National Stock Exchange.  End
 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.