India’s largest lead acid battery manufacturer Exide Industries Limited (Exide) disappointed the street in Q3FY19. Standalone revenue was up 9.7% yoy (down 8% qoq) at Rs2,497cr, slightly lower than the expectation of Rs2,565cr. EBITDA was up 10.6% yoy (down 6% qoq) at Rs312.53cr, which was significantly lower than the expectation of Rs360cr. The EBITDA margin expanded 10bps yoy (29bps qoq) to 12.5%. Higher depreciation further pulled down the net profit. Standalone PAT was flat yoy (down 3% qoq, adjusted) at Rs155cr. PAT significantly missed the expected value of Rs193cr.
Lead prices have cooled down significantly in recent times (down 11% yoy, 5% qoq in rupee terms). Hence, the street was expecting the EBDITA to go as high as 14% in Q3FY19. Hence, the sub-13% EBITDA margin has disappointed investors.
According to the company's press release, top-line growth (up 10% yoy) was led by volume growth in automotive, motorcycles, UPS, and solar batteries.
Exide Industries Ltd is currently trading at Rs. 224, down by 2.55 points or 1.13% from its previous closing of Rs. 226.55 on the BSE.
The scrip opened at Rs. 229.45 and has touched a high and low of Rs. 229.45 and Rs. 216.85 respectively. So far 77,30,015 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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