Exide Industries slips 8% on weak March quarter results

Shares of Exide Industries slipped eight for each cent to Rs 158.50 on the BSE on Monday in the intra-day trade following the corporation documented 21 for each cent 12 months on 12 months (YoY) drop in web turnover at Rs 2,055 crore in the March quarter (Q4FY20) owing to lockdown. The car ancillary corporation had posted web turnover of Rs 2,598 crore in the 12 months-in the past quarter.

The company’s gain following tax too declined 20 for each cent YoY to Rs 168 crore as in opposition to Rs 211 crore documented in the corresponding quarter of the former fiscal.

The management explained the automotive sector is facing a whole lot of challenges owing to regulatory modifications, know-how shifts and demand uncertainty owing to which there was a unique slowdown in car OE segment. On the top rated of it, the 12 months-close profits throughout all segments of the corporation were seriously impacted following the entire lockdown was imposed in the place as a final result of Covid-19.

“The firm’s gross margin was higher than estimate and expanded 310 basis issue YoY (200bp QoQ) to 38.2 for each cent. This was largely attributed to the profit of the combine as well as stock modifications, partly offset by an improve in lead rates in Q3FY20 (as the effects of lead rates will come with a quarter lag). EBITDA (earnings in advance of desire, taxes, depreciation and amortization) margins contracted 130bp YoY (-20bp QoQ) to thirteen.1 for each cent as the profit of lessen raw product value was overshadowed by unfavorable functioning leverage,” Motilal Oswal Securities explained in final result update.

“Exide Industries would see a lessen profit from lead rates than Amara Raja Batteries owing to its captive smelter. On the other hand, Exide Industries should really see a much better combine owing to higher aftermarket share,” it explained. The brokerage agency prefers Exide Industries as it features exceptional chance-reward considering its market place leadership, know-how alliances, backward integration, and much better combine.

At 01:27 pm, the inventory was investing 7.six for each cent lessen at Rs 159.90 on the BSE, as in opposition to .06 for each cent rise in the S&P BSE Sensex. The investing volumes on the counter much more than doubled with a combined 14 million shares altering palms on the NSE and BSE till the time of creating of this report.