Kolkata-based battery maker Exide Industries today reported its financial results for the second quarter and first half ended September 30, 2023. The company posted healthy growth in revenues and profits on the back of improved demand across automotive and industrial segments.
Exide’s revenue from operations grew by 10% year-on-year to Rs 4,107 crore in Q2 FY2023-24. For the first half, revenues were up 7% to Rs 8,179 crore compared to the same period last year.
The profit before tax (PBT) jumped by 17% to Rs 385 crore in Q2, while EBITDA rose by the same magnitude to Rs 483 crore. The EBITDA and PBT margins came in higher at 11.8% and 9.4% respectively in Q2 FY24 versus 11.1% and 8.8% in Q2 FY23.
In the first half also, EBITDA increased by 14% to Rs 915 crore and the margin expanded to 11.2% from 10.5% in H1 FY23. PBT was up by 12% at Rs 707 crore with the margin at 8.6% compared to 8.3% in the same period last fiscal.
The net profit or profit after tax (PAT) grew by 17% year-on-year to Rs 287 crore in the September quarter. For H1 FY24, PAT rose by 12% to Rs 529 crore.
The earnings per share came in at Rs 3.38 in Q2 FY24, higher than Rs 2.90 in Q2 FY23.
Improved volumes coupled with cost control measures aided the healthy growth in profits. Other expenses as a percentage of sales reduced to 13.1% in Q2 FY24 from 13.5% last year.
On the business front, Exide saw pickup in demand from automotive OEMs as well as the aftermarket. This supported volumes in the automotive division. In the industrial segment, continued investments across solar, telecom, infrastructure, financial services drove strong order inflows and sales growth.
Exide maintained a robust balance sheet with zero debt and healthy cash flows owing to tight working capital management.
The company is setting up a lithium-ion cell manufacturing facility through its wholly owned subsidiary – Exide Energy Solutions. During the quarter, Exide invested Rs 275 crore in Exide Energy by subscribing to its equity shares. So far, it has pumped in Rs 1,530 crore in the subsidiary.
The board of directors, in its meeting today, decided to further invest up to Rs I,100 crore, in one
or more tranches, aggregating total equity investment upto Rs 3,000 crore in the lithium ion subsidiary.
Exide Energy is engaged in manufacturing lithium-ion batteries for India’s electric vehicles market as well as stationary storage applications. The greenfield project is progressing as per schedule.
“Sales growth of 10% was broad-based across automotive and industrial verticals,” said MD & CEO Subir Chakraborty. “With effective cost control, growth in profits was impressive. We are optimistic about the medium-term demand outlook and believe we are well positioned to capitalize on growth opportunities.”
He further added, “Our lithium-ion cell facility is progressing well. We look forward to becoming a leading domestic player in the fast-growing EV and energy storage solutions space.”
Exide Industries is one of India’s leading manufacturers of automotive and industrial batteries. It enjoys a leadership position in the Indian storage battery market with a broad product range from 2.5Ah to 20,200Ah capacity batteries.
The company has a nationwide presence with 18 factories across India and exports to over 60 countries worldwide. Exide is now foraying into lithium-ion batteries through two wholly owned subsidiaries catering to the electric mobility and stationary storage solutions space.