Exide Q2 OPM up 460 bps YoY to 12.3%

Country's largest lead acid storage battery manufacturer and stored energy solutions provider Exide Industries ' net profit grew by lower than expected 135.7% year-on-year to Rs 120.2 crore in the quarter ended September 2012. Analysts on an average had expected it at Rs 152 crore.

Operating profit margin rose by 460 basis points YoY to 12.3 percent during the quarter, which too was below forecast of 15.4 percent due to higher raw material cost.

Revenue increased 29.45% - in-line with expectations - to Rs 1,516.8 crore in the second quarter of FY13 from Rs 1,172 crore in a year ago period, indicating good growth in both auto and inverter battery segments.

Higher other expenses and employee benefits too added pressure on the profitability.

Cost of materials consumed rose by 59% YoY to Rs 1,097 crore and other expenses jumped 28% YoY to Rs 236 crore during the quarter.

Employee benefit expense increased to Rs 90 crore from Rs 64.4 crore.