Saturday, October 30, 2021

Exide Industries Q2 PAT down -23.62% yoy | Stock Outlook


Exide Industries Q2 PAT down -23.62% yoy at Rs196r as a 40% spike in raw material costs eats into profits

Exide Industries Ltd reported 18.62% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs4,758cr

Exide Industries Ltd reported 18.62% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs4,758cr. The revenues were higher by 33.68% on a sequential basis compared to Rs3,559cr revenues in the Jun-21 quarter.

Revenues from the storage batteries and allied product showed the sharpest growth of 19% at Rs3,384cr. The insurance business, which is now being sold to HDFC, saw revenues grow by 17% at Rs1,369cr. The top line growth in the quarter was driven almost equally by both the core verticals of Exide.

The consolidated Profit after tax (PAT) for the Sep-21 quarter was down -23.62% at Rs196cr. Profits were up 6-fold compared to the profits in the sequential quarter. In terms of yoy growth, the EBIT of the storage batteries vertical grew by 6% at Rs317cr.

This could have been much better had it not been for the 40% spike in raw material costs. Insurance made an EBIT loss on higher COVID related claims and provisions. Net margins at 4.13% was lower than 6.41% on a yoy basis and it was sharply better than NPM of 0.92% in Jun-21 quarter.

Stock Outlook

162 is support zone for stock in short term and will remain sideways in long as well as short term. Avoid will be better.

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