In This Article:
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Sales Growth: Overall modest 4% sales growth during the fourth quarter, with an 8% sequential growth in Q4.
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Business Performance: 75% of the business registered double-digit growth, while 25% experienced a decline in revenues.
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Operating Profitability: Impacted by high input costs, particularly due to increased antimony prices.
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Cash Flow: Cash flow from operations at a pre-working capital increase level sustained at last year's level.
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EBITDA Margins: Marginally impacted due to higher raw material prices and lower growth in some business verticals.
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Investment in Lithium and Cell Manufacturing: INR 1,000 crore invested in FY25, with an additional INR 300 crore equity in April.
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Total Equity Investment: INR 3,602 crore in Exide to date.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Exide Industries Ltd (BOM:500086) reported double-digit growth in nearly 75% of its business segments, including mobility, solar, and IUPS.
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The company successfully exported its first batch of advanced AGM batteries for SLI applications to the export market.
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Exide Industries Ltd (BOM:500086) maintained a strong balance sheet with zero debt and high cash flow generation.
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The company is investing in lithium-ion cell manufacturing, with commercial production expected to start within the current fiscal year.
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Exide Industries Ltd (BOM:500086) is implementing cost excellence initiatives and upgrading manufacturing technology, such as transitioning to punch grid technology for two-wheeler manufacturing.
Negative Points
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25% of Exide Industries Ltd (BOM:500086)'s business experienced a decline in revenues due to weaker demand in auto OEMs, telecom, and home inverters.
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Operating profitability was impacted by high input costs, particularly due to a significant increase in antimony prices.
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The company faced challenges in the home inverter market, which remains soft, although demand is expected to pick up in the next quarter.
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Exide Industries Ltd (BOM:500086) experienced a decline in European industrial battery demand due to the ongoing slowdown and recession in EU markets.
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The company had to write off certain slow and non-moving operating assets, impacting profitability.
Q & A Highlights
Q: There has been a weakness in the home inverters segment. Is this a short-term issue or are there structural challenges? A: The weakness is partly due to internal restructuring and external market factors. We have separated the reserve power and mobility segments, allowing the home inverter business to build its own network. This strategic shift is expected to benefit both segments. Additionally, early monsoons affected demand, but recent performance indicates a recovery, and we expect strong growth in Q1 FY26.