Exide Industries Shares in Focus After Q2 FY25 Results

As of November 5 at 12:26 PM, Exide Industries’ share is trading at ₹435.15, reflecting a decrease of 2.22% from the last closing price. The company exhibits a Return on Equity (ROE) of 7.30% and a Return on Assets (ROA) of 5.36%. Its current Price-to-Earnings (P/E) ratio is 45.21, and the Price-to-Book (P/B) ratio stands at 2.74.

Segment Performance

Exide experienced strong demand in the two-wheeler and four-wheeler replacement markets, leading to double-digit revenue growth. Additionally, the industrial-UPS and solar segments demonstrated robust demand during the quarter. Conversely, the home-UPS segment faced weaker demand due to the early onset of the monsoon.

Q2 Results Overview

On November 4, 2024, Exide Industries announced its Q2 results, reporting a modest revenue growth of 1.8% year-on-year. However, the company’s profit fell sharply, down 14.15% compared to the same quarter last year.

In comparison to the previous quarter, Exide’s revenue showed a slight improvement, growing by 0.32%, and profit increased by 5.1%. These figures highlight a mixed performance as the company navigates challenging market conditions.

Exide Industries announced a 13.66% drop in consolidated profit after tax (PAT) to ₹233.4 crore for the September quarter, mainly due to increased expenses. In the same quarter last year, Exide reported a consolidated PAT of ₹270.32 crore.

The company’s consolidated revenue from operations for this quarter reached ₹4,450 crore, compared to ₹4,371.52 crore in the previous year. However, total expenses for the quarter increased to ₹4,157.63 crore, up from ₹4,043.57 crore in the same quarter last year.

Operational Cost Challenges

Selling, General & Administrative expenses rose significantly, increasing by 2.74% from the previous quarter and 9.93% year-on-year. This rise in operational costs may be impacting profitability. Additionally, operating income decreased by 0.86% quarter-on-quarter and by 8.68% year-on-year, indicating further pressures on the company’s earnings. Exide reported an Earnings Per Share (EPS) of ₹2.72 for Q2, representing a decline of 13.92% year-on-year, raising concerns for investors focused on growth.

Market Performance and Outlook

In terms of market performance, Exide Industries has faced challenges, with a -6.31% return over the last 5 days and -5.50% over the last 6 months. However, the company has achieved a notable 35.14% return year-to-date, suggesting some resilience in its long-term outlook.

The company’s current market capitalisation stands at ₹37,829.25 crore, with a 52-week high of ₹620.35 and a low of ₹257.75, indicating a volatile trading period for the stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.