Exide Industries (Q4 FY14)

India Infoline News Service | Mumbai |

Exide Industries for Q4 FY14 reported revenue of Rs16.1bn compared to our estimates of Rs13.8bn.

CMP Rs127, Target Rs120, Downside 5.3%
 
  • Net sales at Rs16.1bn was substantially higher than our and street estimates; represented a growth of 4.7% yoy and 23.7% qoq

  • Sequential improvement in revenues was primarily on the back of volume growth in the inverter segment (particularly telecom) and modest growth in automotive replacement demand

  • OPM at 13.6% was much higher than our expectations owing to benefits of operating leverage and strong control on costs

  • PAT registered a fall of 9.8% qoq but jumped 70.5% sequentially

  • Automotive industry fortunes are expected to revive from H2 FY15 and further strengthen in FY16, however replacement demand will be weak given the muted OEM sales in the past three years

  • We maintain our Market Performer rating on the stock as we believe earnings will see modest CAGR of 10.2% in spite of benefits of operating leverage given strong volume growth expectation from OEM business

Result table
(Rs m)
Q4 FY14
Q4 FY13
% yoy
Q3 FY14
% qoq
Net sales
16,130
15,412
4.7
13,039
23.7
Material costs
(10,779)
(10,336)
4.3
(8,486)
27.0
Personnel costs
(870)
(901)
(3.4)
(897)
(3.0)
Other overheads
(2,292)
(2,131)
7.6
(2,231)
2.8
Operating profit
2,189
2,044
7.1
1,426
53.5
OPM (%)
13.6
13.3
31 bps
10.9
264 bps
Depreciation
(326)
(288)
13.2
(317)
2.9
Interest
0
(8)
(102.6)
(4)
(105.3)
Other income
98
304
(67.8)
49
99.4
PBT
  1,961
  2,053
  (4.5)
  1,155
  69.9
Tax
  (640)
  (588)
  8.8
  (380)
  68.6
Effective tax rate (%)
32.6
28.7
32.9
Adjusted PAT
  1,321
  1,465
  (9.8)
  775
  70.5
Adj. PAT margin (%)
8.2
9.5
 (131) bps
5.9
 225 bps
Ann. EPS (Rs)
6.2
6.9
  (9.8)
3.6
  70.5
Source: Company, India Infoline Research

Net sales better than expectations

Exide Industries for Q4 FY14 reported revenue of Rs16.1bn compared to our estimates of Rs13.8bn. Growth was at 4.7% yoy and 23.7% qoq. This was driven by a sharp revival in the inverter segment volumes especially so for the telecom sub segment where the company saw substantial sequential jump in volumes. Overall volume growth for the inverter segment was at 10% qoq. In the automotive segment while the OEM volumes declined in Q4 FY14 replacement volumes grew at sub 10% rate. Capacity utilization for the passenger cars stood at 75%, while two wheelers was at 80% and industrial segment was at 70%. In terms of realizations, no major price changes were made during the quarters in spite of flat lead prices and appreciation in rupee which would have warranted a price cut otherwise.


OPM better than expectations driven by operating leverage

During Q4 FY14, OPM for Exide Industries was at 13.6% better than our expectations of 12.4%. While operating profit was higher by 7.1% yoy it jumped 53.5% qoq. OPM increased 264bps sequentially while it grew by 31bps yoy. Better than expected performance w

BSE 204.80 [1.55] ([0.75]%)
NSE 204.80 [1.60] ([0.78]%)

***Note: This is a NSE Chart

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.