Exide Industries Q1 Results Review - Maintain Add; Lithium-Ion Battery Ramp-Up A Key Ahead: Yes Securities

Yes Securities Report

Exide Industries Ltd.’s Q1 FY25 results were weak with Ebitda/adjusted profit after tax miss of ~8%-16% to our and consensus estimates. This was led by lower-than-expected gross margins at 30.7% (estimate: 31.7%, +240 bp/-230 bp YoY/QoQ), primarily led by unfavorable product mix.

However, lead prices have increased by ~5%/4% YoY/QoQ in Q1 FY25, the company has taken price increase in few segments which should fully reflect from Q2 FY25E.

The demand outlook is positive for the base business for auto/industrial vertical, as current volume growth is expected to sustain over near-mid term. Exide Industries did indicated-

1. market share gains in the domestic market,

2. increased distribution to +115,000 in FY24 (versus +95,000 in FY23),

3. double digit growth in industrial vertical and positive response to new product launches in exports were the factors which led growth in FY24.

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