Exide Q1 net seen up 5% to Rs 160cr, margins may be stable
Exide Industries' first quarter revenue may rise 7.7 percent year-on-year to Rs 1,674 crore during the quarter as the company will benefit from demand uptick in 4-wheeler replacement battery segment and that will offset slowdown in original equipment manufacturer (OEM) batteries and industrial battery segment.
July 15, 2013 / 13:00 IST
Exide Industries' April-June quarter earnings will be announced today. According to a CNBC-TV18 poll, analysts on an average expect this battery manufacturer to report 5.2 percent growth year-on-year in net profit at Rs 160 crore in first quarter of financial year 2013-14.
Revenue may rise 7.7 percent year-on-year to Rs 1,674 crore during the quarter as the company will benefit from demand uptick in 4-wheeler replacement battery segment, which will offset slowdown in original equipment manufacturer (OEM) batteries and industrial battery segment. Margins are likely to be stable at 15 percent as against 14.9 percent Y-o-Y. While USD-denominated lead prices have come off (down 11 percent Q-o-Q), the landed cost of lead due to depreciating rupee coupled with the rising lead premium has resulted in increased procurement cost for imported lead.However, despite lead prices rising 7 percent Y-o-Y in rupee terms in Q1, this will be offset by price hikes taken in Q4, which are expected to aid margins in Q1 due to lag effect.Gains in Q-o-Q margin are due to seasonally strong high-margin industrial battery sales in 1Q and price increases in both the OEM and replacement segments.Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen going up by 5.5 percent Y-o-Y to Rs 245 crore in first quarter.Also Read - Auto sector shifts focus from high margins to high volumes Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
