- 31 Jul 2024
- ICICI Securities
EXIDE INDUSTRIES REPORTS MUTED PERFORMANCE, MARGINS DISAPPOINT
EXIDEIND - 393 Change: 9.20 (2.40 %)News: On standalone basis, topline for the quarter came in at ₹4,313 crore, up 5.9% YoY. EBITDA for Q1FY25 came in at ₹494 crore, with EBITDA margins at 11.5% (down 140 bps QoQ). PAT in Q1FY25 stood at ₹280 crore (up 16% YoY). During the quarter it has further invested ₹ 200 crore by way of subscription in the equity share capital of its wholly owned subsidiary, "Exide Energy Solutions Limited" (EESL, executing Li-On cell manufacturing plant). With this investment and additional ₹ 75 crore infusion in July 2024, the total investment made by the Company in EESL stands at ~₹ 2,577 crore.
Views: As per company’s commentary its automotive division witnessed uptick across OEM and replacement market while it continues to witness healthy demand prospects in the industrial domain. On the Li-On project, the company shared that the execution in as per schedule and the company is working upon onboarding customers across mobility and stationary application domains. With long term investment horizon, we retain our positive stance on Exide Industries and are enthused by its OEM tie-up (Hyundai Motors group) in Li-On cell domain.
Impact: Neutral