Shares of Exide Industries rose over 3% on November 27 after the firm boosted its stake in subsidiary Exide Energy Solutions Ltd (EESL) on rights basis.
On November 26, Exide Industries said it boosted stake in EESL to Rs 3,052 crore with Rs 100-crore investment and said the funds will help expand operations in advanced battery cell production for EVs.
Exide also said the investment will support EESL’s greenfield battery manufacturing plant in Bengaluru.
At 10:40 am on November 27, Exide's shares were trading 3.2% higher at Rs 339 apiece.
The battery maker reported a smaller-than-expected second-quarter profit in November quarter.
Standalone profit after tax for the July-September quarter rose 3.8% to Rs 298 crore, falling short of analysts' estimate of Rs 309 crore, according to data compiled by LSEG.
Exide is one of India's biggest battery makers and gets nearly 70% of its sales from automotive clients.
But sales of cars to dealers fell for the first time in more than two years in the September quarter, as manufacturers moderated dispatches to help reduce high levels of unsold cars.
"Excess channel inventories... dampened demand from automotive clients," the company said in a statement.
That led to a revenue miss, with Exide's quarterly revenue of Rs 4,267 crore, falling short of analysts' estimate of Rs 4,439 crore.
With inputs from Reuters
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