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Storage battery major Exide Industries on Monday reported a 13.66 per cent y-o-y decline in its consolidated net profit to ₹233.40 crore for the second quarter this fiscal from ₹270.32 crore for the same period last fiscal.
The company’s revenue from operations, however, grew 17.95 per cent y-o-y at ₹4,450 crore compared to ₹4,371.52 crore for the corresponding period a year ago, according to a stock exchange filing. Expenses during the period under review rose 2.82 per cent y-o-y at ₹4,157.63 crore.
Profit growth
On a standalone basis, the battery major’s net profit rose by 3.75 per cent y-o-y to ₹297.77 crore. Revenue from operations during Q2FY25 increased by 3.91 per cent y-o-y at ₹4,267.30 crore.
The company in a release, stated that in the second quarter, EBITDA and PBT margins were 11.3 per cent and 9.4 per cent compared to 11.8 per cent and 9.4 per cent in the same quarter of the previous year. Efficient working capital management, along with current profitability levels, enabled the company to maintain its track record of generating positive cash flows, it said, adding the balance sheet remained comfortable with zero debt and high net worth.
Market demand
For the quarter ended September 30, 2024, the two-wheeler and four-wheeler replacement markets experienced robust demand, leading to double-digit revenue growth. Industrial-UPS and Solar also enjoyed strong demand momentum during the quarter. However, excess channel inventories for Auto OEMs dampened demand across the Auto OEM space, Exide said.
During the second quarter, Exide Industries invested ₹250 crore as equity in its wholly-owned subsidiary Exide Energy Solutions (EESL). With this, the total equity investment made in EESL to date stood at ₹2,852.24 crore.
Positive outlook
Commenting on the results, Avik Roy, MD & CEO, said, “In the first half of the year, we have delivered EBITDA and PBT margin of 11.4 per cent and 9 per cent, respectively. Efficient procurement, coupled with cost optimisation initiatives has led to stability in operating performance, despite high commodity prices. For the near-term, the business outlook is positive and commodity prices have started easing, which is expected to support profitability.”
On Monday, the company scrip ended the day at ₹ 445.40 apiece on BSE, down 2.92 per cent from the previous close.
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