Exide profit at Rs 180.12 cr in Q4 FY23, number below analyst expectation

Increase in raw material prices hurt profitability on a sequential basis, says battery maker

Battery maker Exide Industries on Monday reported a lower-than-expected consolidated net profit of Rs 180.12 crore in Q4 FY23, impacted by higher raw material cost.

The company, in the year-ago period, had posted a net profit of Rs 3,959.24 crore which included Rs 3,812.33 crore from discontinued operations. It may be mentioned that during the quarter ended March 31, 2022, Exide had disposed of its entire equity shareholding in Exide Life Insurance Company.

Revenues from operations in Q4 FY23 stood at Rs 3,676.76 crore, an increase of 4.4 per cent from the year-ago period. A Bloomberg consensus estimate had pegged revenues at Rs 3,608 crore and net income adjusted at Rs 240 crore.

For full FY23, revenues stood at Rs 15,078.16 crore compared to Rs 12,789.22 crore in FY22. Net profit was at Rs 822.70 crore in FY23: it was Rs 4,366.93 crore in the previous year on the back of profit from discontinued operations.

Subir Chakraborty, Exide’s managing director and chief executive officer, said that increase in raw material prices impacted profitability on a sequential basis. “However, on a full-year basis, our performance is noteworthy with sales and PBT growth each at 18 per cent. We are positive on the demand scenario in the near-term and our focus remains on delivering profitable growth.”

Digitisation and cost optimisation initiatives improved manufacturing. “Our lithium-ion cell manufacturing project is on track and is progressing as per the timelines. With this, we look forward to becoming one of the leading domestic players offering state-of-the-art products and solutions in the fast-growing electric mobility space and stationary space,” he said.