Exide Industries slips after muted growth in Q4 net profit

The result was announced during trading hours today, 29 April 2013.

Meanwhile, the BSE Sensex was up 69.91 points, or 0.36%, to 19,356.63.

On BSE, 5.74 lakh shares were traded in the counter as against an average daily volume of 1.60 lakh shares in the past one quarter.

The stock hit a high of Rs 142 and a low of Rs 135.25 so far during the day. The stock had hit a 52-week high of Rs 166.30 on 19 October 2012. The stock had hit a 52-week low of Rs 112.90 on 16 May 2012.

The stock had outperformed the market over the past one month till 26 April 2013, rising 10.19% compared with the Sensex's 3.11% rise. The scrip had also outperformed the market in past one quarter, falling 14.73% as against Sensex's 4.06% fall.

The large-cap company has an equity capital of Rs 85 crore. Face value per share is Re 1.

Exide Industries' net profit rose 13.36% to Rs 522.78 crore on 18.73% increase in total income to Rs 6147.25 crore in the year ended March 2013 over the year ended March 2012.

On a consolidated basis, net profit rose 23.16% to Rs 549.35 crore on 19.88% increase in total income to Rs 6421.94 crore in the year ended March 2013 over the year ended March 2012.

The company's operating margin improved 320 basis points in Q4 March 2013 over Q3 December 2012.

Commenting on the financial performance of the company, managing director and CEO, T.V. Ramanathan said, "There is a marked improvement in the company's performance during Q4 March 2013. The regaining of market share in the crucial automotive replacement market, which started during Q1 June 2012, gained further traction during this period. However, the full impact of the volume growth did not accrue due to de-growth in the original equipment (OE) business in the 4-wheeler segment and less than expected growth in the 2-wheeler OE segment."

In the industrial strategic business units (SBU), which accounts for 40% of the company's revenue, demand for Exide's range of home UPS batteries picked up during Q4 March 2013. "However the lack of buoyancy in other infrastructure sectors of the economy like telecom, railways and power projects remains a matter of concern for the company," Mr Ramanathan said.

The capital expenditure of the company during the financial year 2012-13 was Rs 196 crore. For the year 2013-14, the company has planned a capital outlay of Rs 250 crore to be spent on capacity augmentation for industrial batteries and modernisation. The company continues to be debt free, Exide said in a statement.

During Q4 March 2013, the company completed the acquisition of remaining 50% stake in ING Vysya Life Insurance, proving its long term commitment to the insurance business. The acquisition was funded entirely from the internal cash resources of the company, it added.

Exide Industries is a leading manufacturer of lead acid batteries for automotive, telecom, traction, UPS, naval, and motive power markets.

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