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Exide Q1 profit rises 11% to Rs 210 cr; lead cost, rupee depreciation dent margin

EBITDA margin contracted 140 basis points to 14.1 percent for quarter ended June, impacted by higher lead costs coupled with currency depreciation.

August 01, 2018 / 02:14 PM IST
 
 
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Battery manufacturer Exide Industries' June quarter profit increased 11.1 percent year-on-year to Rs 210 crore, supported by revenue and operational growth. But it was impacted by higher depreciation (down 28 percent) and tax cost (24 percent).

Profit in the year-ago period stood at Rs 189 crore.

The company said it is focussing on cost control and technology upgradation as strategies to improve the bottomline.

Revenue during the quarter increased 32.6 percent to Rs 2,772 crore compared to Rs 2,090 crore in same period last year following volume growth.

Volumes in automotive and motorcycle batteries remained strong while growth in UPS, telecom, solar as well as other infrastructure segments continued be good during the quarter, G Chatterjee, MD & CEO said.

EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 20.6 percent year-on-year to Rs 391 crore but margin contracted 140 basis points to 14.1 percent for quarter ended June, impacted by higher lead costs coupled with currency depreciation.

Raw material cost during the quarter increased 17 percent YoY to Rs 1,752 crore.

ICICI Direct Research said keeping in mind the structural recovery in automotive demand, Exide being the market leader is well placed to cater to the rising demand. "We continue to remain positive on the stock as it is available at reasonable valuation vis-a-vis some of its peers."

At 13:50 hours IST, the stock price was quoting at Rs 264.90, down Rs 14.65, or 5.24 percent on the BSE.

Moneycontrol News
first published: Aug 1, 2018 02:02 pm

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