EV Battery Stock Announces 200% Dividend & Q4 Results. 5 Key Takeaways

In recent years, the electric vehicle (EV) sector in India has emerged as a hot favourite investment avenue.

Given the fundamental role of Lithium-ion batteries as the primary component in EVs, shares of electric vehicle (EV) battery companies have also garnered significant attention and demand from investors.

To further stimulate investor enthusiasm, India's leading battery maker has announced a big dividend payout.

With an impressive track record, the company has distributed a total of 33 dividends since the year 2002, highlighting its consistent approach to rewarding shareholders.

The EV battery company in question is none other than Exide Industries.

#Exide Industries dividend and Q4 results

Exide Industries, on 8 May 2023, announced a final dividend of Rs 2 per equity share of the face value of Re 1 each, a 200% payout on the face value.

The said dividend is subject to the approval of the shareholders at the ensuing 76th Annual General Meeting (AGM).

The record date for the same will be announced post the board meeting on 8 August 2023.

Coming to its results, for the March 2023 quarter, the company reported a 4.3% YoY rise in revenue at Rs 36.7 bn.

This was due to overall volume growth in the domestic market from OEMs (Original Equipment Manufacturers), with supply-side constraints easing out during the quarter.

However, the company reported a lower-than-expected consolidated net profit of Rs 1.8 bn, down 95.5% YoY, impacted by higher raw material costs.

In the year-ago period, Exide had posted a net profit of Rs 39.6 bn, which included Rs 38.1 bn from discontinued operations.

On the operating front, earnings before interest, taxes, and depreciation (EBITDA) came in at Rs 4.1 bn, up 16.3% YoY, aided by sales.

It must be noted that during the quarter under review, Exide disposed its entire stake in Exide Life Insurance Company.

Exide Industries dividend history

The five-year average dividend payout ratio of Exide Industries stands at 29.3%. The dividend yield over the past five years has averaged 1.5%.

Take a look at the table below to see Exide Industries' complete dividend track record.

Year End	Dividend %	Dividend per Share(Rs)
31-Mar-22	200	2.00
31-Mar-21	200	2.00
31-Mar-20	410	4.10
31-Mar-19	240	2.40
31-Mar-18	240	2.40
31-Mar-17	240	2.40
31-Mar-16	240	2.40
31-Mar-15	220	2.20
31-Mar-14	180	1.80
31-Mar-13	160	1.60
31-Mar-12	150	1.50
31-Mar-11	150	1.50
31-Mar-10	100	1.00
31-Mar-09	60	0.60
31-Mar-08	40	0.40
31-Mar-07	35	0.35
31-Mar-06	30	3.00
31-Mar-05	25	2.50
31-Mar-04	40	4.00
31-Mar-03	40	4.00
31-Mar-02	35	3.50
31-Mar-01	40	4.00
31-Mar-00	35	3.50
31-Mar-99	35	3.50
31-Mar-98	32	3.20
31-Mar-97	37	3.70
31-Mar-96	32	3.20
31-Mar-95	32	3.20
31-Mar-94	32	3.20

For more, visit Exide Industries' dividend payout history.

Strong growth prospects

Going forward, the company remains focused on delivering profitable growth and providing technologically advanced products in the lead-acid battery business.

The company is setting up a green-field plant to manufacture Lithium-ion batteries. Earlier, it had announced that the first phase of the plant (6 gigawatt-hour) is likely to entail an investment of around Rs 40 bn.

With this project on track, it's looking forward to becoming one of the leading domestic players offering state-of-the-art products and solutions in the fast-growing electric mobility space and stationary space.

The company is all set to benefit from subsidies on EV batteries, announced in the Union Budget 2023, for lithium-ion cells, reducing the cost of production for EV makers.

Further, a proposed customs duty exemption on the import of capital goods and machinery required for the manufacturing of lithium-ion batteries will also aid the stock.

How Exide Industries shares have performed recently

In the past one year, shares of Exide Industries have gained 29%. So far in 2023, the stock has gained 3.3%.

But in the past five days, Exide Industries is down 2.9%.

Exide Industries has a 52-week high of Rs 197.3 touched on 2 February 2023 and a 52-week low of Rs 130.2 touched on 20 June 2022.

It is currently trading at a PE (Price to Earnings) multiple of 17.8x, while PB (Price to Book) ratio stands at 1.4x.

About Exide Industries

Exide Industries is an India-based storage battery company. The company's segments include Storage batteries and allied products.

The company is engaged in manufacturing storage batteries for the automotive, industrial, and submarine sectors.

With over 75 years of experience, the company leads the battery market in India. It caters to all top original equipment manufacturers (OEM), including Tata Motors, Maruti, and Bajaj.

Apart from a strong domestic presence, it has an international presence in the USA, Canada, and Gulf Corporation Council (GCC) countries.

In 2018, the company forayed into lithium-ion batteries and started catering to the EV market. By the financial year 2021, it started manufacturing cells in India, which it previously sourced from abroad.

As an established player in the battery market, the foray into EV batteries has allowed the company to grow in the booming segment.

At present, it has nine manufacturing plants in India with a production capacity of 57 million (m) units of automotive power and five bn units of industrial power.

For more details, see the Exide Industries company fact sheet and quarterly results.

You can also compare Exide Industries with its peers:

Exide Industries vs Amara Raja Batteries

Exide Industries vs Everyday Industries

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