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News: On standalone basis, topline for the quarter at Exide came in at ₹4,267 crore, up 3.9% YoY. EBITDA for Q2FY25 came in at ₹484 crore, with EBITDA margins at 11.3% (down 12 bps QoQ). PAT in Q2FY25 stood at ₹298 crore (up 3.8% YoY). During the quarter it has further invested ₹ 250 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 ₹ 100 crore infusion in October 2024, the total investment made by the Company in EESL stands at ~₹ 2,852 crore.
Views: As per company’s commentary its automotive replacement market saw a robust double-digit revenue growth and the industrial segment, particularly in UPS and solar, experienced a healthy demand in the quarter. However, demand from auto OEMs was subdued due to surplus channel inventories. On the Li-On project, the company shared that the On-site construction work is proceeding well as per schedule with likely commissioning in CY25 (Phase-1 of 6 GWH at a capex outlay of ~₹ 4,000 crore). 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