Exide Inds Q4 PAT falls 22% to Rs 236 cr

Exide Industries' consolidated net profit dropped 22.2% to Rs 235.57 crore on 18.3% fall in net sales to Rs 3,474.68 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax tanked 38% to Rs 246.50 crore in Q4 March 2020 as against Rs 397.72 crore in Q4 March 2019. Current tax expenses slumped 43.5% to Rs 46.26 crore in Q4 March 2020 as against Rs 81.83 crore paid in Q4 March 2019. The Q4 earnings was released after trading hours yesterday, 5 June 2020.

Exide Industries assessed the impact of COVID-19 on operations as well as financial results of Exide Life Insurance Company (ELI), a subsidiary of the group. The extent to which COVID-19 pandemic will affect ELI's performance particularly in the areas of revenue, claims, carrying value of investments, solvency margin etc. will depend on future developments, and are presently uncertain.

The group has also considered the possible risk that may result from the pandemic relating to COVID-19 for the remaining components of the group and expects to recover the carrying amount of all its assets including inventories, receivables, investments and other financial and non-financial assets in the ordinary course of business based on the internal and external information available upto the date of approval of these consolidated financial results. The group is continuously monitoring any material changes in future economic conditions.

Commenting on the Q4 performance, G Chatterjee, the managing director (MD) & chief executive officer (CEO) of Exide Industries, said that the automotive sector is facing a lot of challenges due to regulatory changes, technology shifts and demand uncertainty, due to which there was a distinct slowdown in auto OE segment. On top of it, the year-end sales across all segments of the company were severely impacted after the complete lockdown was imposed in the country as a result of COVID-19. The company is focusing on cost control and technology upgradation as strategies to improve the bottom-line.

Shares of Exide Industries rose 0.96% to end at Rs 173 on BSE on Friday, 5 June 2020. The scrip has jumped 17.60% in a month.

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