Exide Industries Q2 Results: Profit Dips Nearly 14%, Revenue Ticks Higher

Exide Industries Ltd. saw its income dip and miss estimates in July-September 2024.

Consolidated net profit of the battery maker fell 13.7% over the previous year to Rs 233 crore in the three months ended 30 September, even as revenue rose 1.8% year-on-year to Rs 4,450 crore, according to an exchange filing on Monday. Analysts polled by Bloomberg had estimated the top line at Rs 4,549 crore and the bottom line at Rs 259 crore.

• Revenue up 1.8% at Rs 4,450 crore (Estimate: Rs 4,549 crore).

• Ebitda down 5.5% at Rs 472 crore.

• Ebitda margin down 80 basis points at 10.6%.

• Net profit down 13.7% at Rs 233 crore (Estimate: Rs 259 crore).

One basis point is one-hundredth of a percentage point.

On a standalone basis, however, net profit rose 3.83% year-on-year to Rs 298 crore, on the back of revenue that increased 3.89% to Rs 4,267 crore.

“Efficient procurement coupled with cost optimisation initiatives has led to stability in operating performance, despite high commodity prices,” Avik Roy, chief executive officer at Exide Industries, said in a media statement. “For the near-term, business outlook is positive and commodity prices have started easing, which is expected to support profitability.”

To be sure, the standalone numbers do not include the investments the company has made in its electric mobility unit.

During the second quarter, Exide Industries invested Rs 250 crore as equity in Exide Energy Solutions Ltd. including Rs 100 crore in October alone. In all, Exide has invested Rs 2,852.24 crore in its wholly owned subsidiary.

EESL is building over two phases a 12 GWh lithium-ion battery manufacturing plant near Bengaluru. The investments will go towards the construction of the main building, and procurement and installation of equipment. The company already has a plant in Prantij, Gujarat, for production, assembly and sale of lithium-ion battery modules and packs.

"We are in the process of identifying and onboarding domestic and international suppliers...," the company said in the media statement. "...and we are making continuous efforts to onboard large customers across mobility, industrial and stationary applications." 

In April 2024, South Korea’s Hyundai Motor Co. Ltd. and Kia Corp. signed a deal with EESL to localise production of lithium-ion batteries that would go into their electric cars in India. Hyundai Motor India Ltd. plans to launch the Creta EV in India in early 2025.