Exide Industries: Q1FY15 Result Analysis

Exide Industries reported net sales of Rs 1909.6 crore in the quarter ended 30th June, 2014 as against Rs 1626.3 crore in the corresponding quarter of previous year. The company’s total expenses came in at Rs 1653.5 crore in the current quarter as against Rs 1395 crore in the corresponding quarter last year. The rise in total expenses was on account of higher cost of materials consumed and an increase in other expenses. However, the cost of materials consumed as a percentage of net sales dropped by 461 bps on YoY basis. The other expenses of the company stood at Rs 254.2 crore in Q1FY15 as against Rs 219.5 crore in Q1FY14, reporting a growth of 15.8%. 

The company’s other income also increased by 40.7% in the current quarter to reach Rs 8.74 crore. All in all, the net profit of the company came in at Rs 185.3 crore in the current quarter as compared to Rs 132 crore and Rs 158.8 crore in the quarter ending March 2014 and June 2013 respectively. In percentage terms, the net profit jumped by 40.37% on sequential basis and 16.68% on yearly basis. The company continues to focus on cost control and technology upgradation to improve profit.

The Board of Directors declared an interim dividend of Rs 1.50 per share as compared to the interim dividend of Rs 1.10 per share for the financial year 2013-14.

P K Kataky, MD & CEO, Exide Industries, said “Though demand for both Automative and Industrial battery remained subdued during the quarter, improvement in our Automative Replacement battery sale accompanied by robust growth in inverter battery sale for both Automative and Industrial SBU along with re-entry into Telecom business helped improving performance.”