The company’s net profit for the period rose by 3.8% from last year to ₹298 crore, while revenue increased by 4% year-on-year to ₹4,267 crore.
Both the topline and bottomline were below CNBC-TV18’s estimate of ₹4,443 crore and ₹308 crore, respectively.
Earnings before Interest, Tax, Depreciation and Amortisation rose marginally by 0.2% from the year-ago period to ₹483 crore. According to an estimate, Exide Industries was expected to report ₹538 crore in EBITDA.
Meanwhile, margins contracted to 11.3% from 11.8% last year. It was also below an estimate of 12%.
During the quarter, Exide has invested ₹250 crore as equity in the wholly owned subsidiary, Exide Energy Solutions Ltd. Additionally, nearly ₹100 crore has been invested in October 2024.
With this, the total equity investment made in EESL till date, stands at ₹2,852.24 crore, including investment made in erstwhile merged subsidiary EEPL.
Exide Industries said the replacement markets for two-wheelers and four-wheelers saw strong demand. The Industrial-UPS and Solar segments experienced significant growth momentum.
In the Home-UPS sector, demand was softer due to the early onset of the monsoon season.
High channel inventories impacted demand in the Auto OEM segment.
The exports market demand has been encouraging the company said, adding that it is making strides to enter new geographies and strengthen position in the existing ones. “Our focus is on enriching the product portfolio and broadening the distribution network to address the international demand,” it said.
The company in a statement said that an efficient working capital management along with current profitability levels enabled it to maintain its track record of generating positive cashflows. Exide’s balance sheet also remains comfortable with zero debt and high net worth.
“In the first half of the year, we have delivered EBITDA and PBT margin of 11.4% and 9.0%, respectively. Efficient procurement coupled with cost optimisation initiatives has led to stability in operating performance, despite high commodity prices. For the near-term, business outlook is positive and commodity prices have started easing, which is expected to support profitability,” said MD & CEO Avik Roy.
Shares of Exide Industries are trading 3.39% lower post the earnings announcement at ₹443.40. The stock has risen about 40% so far in 2024.