India's Exide Industries misses Q1 profit view on higher commodity costs

Exide Industries

30/07/2024 09:38

BENGALURU, July 30 (Reuters) - India's Exide Industries  EXID.NS  missed first-quarter profit
expectations on Tuesday, as higher raw material costs weighed on the battery maker.
    The company's standalone profit after tax rose 15.6% year-on-year to 2.80 billion rupees ($33.4 million) in
the three-month period ended June 30. Analysts, on average, expected a profit of 3.31 billion rupees, as per
LSEG data.
    Expenses of raw materials, which include metals such as lead, rose 13.3% while revenue climbed 5.9%, the
company said.
    
    KEY CONTEXT
    Prices of metals including aluminium and lead, used in the creation of automobile parts, were up during the
reported quarter, analysts said.
    Exide, which earns two-thirds of its revenue from the automotive market, benefited from a 16.1% increase in
total automobile production, as per industry data.
    Battery makers appeared set to benefit as sales of electric vehicles, which are powered by lithium-ion
batteries, are expected to rise 66% this year in India after nearly doubling in 2023, according to research firm
Counterpoint.
    In April, South Korea's Hyundai Motor  005380.KS  and Kia Corp  000270.KS  partnered with Exide Industries'
unit Exide Energy Solutions to supply batteries for their EVs.
    
    PEER COMPARISON
                                   Valuation     Estimates (next 12         Analysts' sentiment         
                                   (next 12           months)                                           
                                    months)                                                             
                      RIC        PE     EV/EBI  Revenue     Profit    Mean     # of      Stock to       Div
                                        TDA     growth      growth    rating*  analysts  price          yield
                                                                                         target**       (%)
 Exide Industries      EXID.NS   33.43   20.01     9.96      22.16    Hold           14      1.21           0.36
 Amara Raja Energy &   AMAR.NS   27.18   15.43     9.82      15.38    Hold           12      1.22           0.60
 Mobility                                                                                               
 Bosch                 BOSH.NS   45.78   37.33    11.71      26.46    Hold            4      1.24           1.07
 HBL Power Systems     HBLS.NS   NULL   NULL       NULL       NULL    Null            0      NULL           0.07
    * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
        
    APRIL-JUNE STOCK PERFORMANCE
    
    -- All data from LSEG IBES
    -- $1 = 83.7300 Indian rupees
    

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 (Reporting by Varun Hebbalalu in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((varunvyas.hebbalalu@thomsonreuters.com;))