Exide Industries Q1 Review – Decent Performance In Tough Times: Dolat Capital

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Exide Industries Ltd. posted better than expected numbers in a Covid-19 impacted quarter led by improvement in automotive replacement demand and traction in uninterruptible power supply batteries.

Revenue grew 60% YoY to Rs 24.86 billion on a low base. Ebitda stood at Rs 2.6 billion with margin of 10.5%, fall in gross margin and negative operating leverage was partially offset by cost control measures.

Our channel checks indicate demand is strong with a shortage of supply across segments post Covid-19 lockdown restriction subsides.

We expect demand to improve from Q2 post vaccination drive.

The key near to medium term tailwinds for Exide Industries include –

1. recovery in demand for automotive both replacement and original equipment manufacturers

2. gaining market share from unorganised players due to strong brand loyalty;

3. strong inverter segment demand due to the continuation of work from home and online school situation.

Click on the attachment to read the full report:

Dolat Capital Exide Industries Q1FY22 Result Update.pdf


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