Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Exide: Reels under auto downslide - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 13, 2001

    Exide: Reels under auto downslide

    Exide Industries Ltd (EIL), has reported a net profit of Rs 36 m for 1QFY02, a decline of 48.2% YoY. The company's sales grew by 11% during this period to Rs 1,762 m, but higher expenses on account of staff and other expenses have taken a toll on the company's bottomline.

    (Rs m) 1QFY01 1QFY02 Change
    Sales 1,586 1,763 11.1%
    Other Income 3 3 17.2%
    Expenditure 1,258 1,463 16.3%
    Operating Profit (EBDIT) 328 300 -8.7%
    Operating Profit Margin (%) 20.7% 17.0%  
    Interest 130 130 0.2%
    Depreciation 109 113 4.3%
    Profit before Tax 93 59 -35.7%
    Extraordinary items 8 12 47.6%
    Tax 14 11 -21.4%
    Profit after Tax/(Loss) 70.3 36.4 -48.2%
    Net profit margin (%) 4.4% 2.1%  
    Diluted number of shares 36 36  
    Diluted Earnings per share* 7.8 4.0  

    On the sales front, the company saw a decline in automobile battery volumes in 1QFY02, especially in the utility, medium and heavy commercial vehicle segments. Demand from both OEM and replacement segments is down. The growth in 1QFY02 sales has come mainly from the industrial segment, and even in that from the submarine segment specifically.

    The company's raw materials expenses at Rs 1,039 m grew by 10% YoY in 1QFY02, its staff costs grew by 13% to Rs 189 m and other expenses went up sharply by 28.5% YoY to Rs 405 m.

    As a result of the above the company's operating margins fell from 20.7% in 1QFY01 to 17.0% in 1QFY02, despite a decent sales growth.

    The extraordinary items relate to amortisation expenses, which occured due to payments for the company's voluntary retirement scheme, website development and ERP implementation costs.

    EIL is India's largest automotive storage manufacturer. It also manufactures batteries which find use in heavy-duty applications like power and telcommunications. Exide has a 92% market share in the OEM segment and 85% in the replacement market.

    Exide is likely to see better fortunes in 2HFY02 if the industrial and agricultural sectors improve resulting in higher demand from the automobile sector. On the current price of Rs 59.5 it is trading at 5.2x FY01, EPS of Rs 11.5.



    Equitymaster requests your view! Post a comment on "Exide: Reels under auto downslide". Click here!


    More Views on News

    Exide Industries: Good show amid the broad based recovery! (Quarterly Results Update - Detailed)

    Oct 28, 2016

    Good show amid the broad based recovery

    Atul Auto: Demonetization Impacts Volumes and Profitability (Quarterly Results Update - Detailed)

    Mar 1, 2017

    Atul Auto has reported a 11.2% YoY decline in the topline while the bottomline has declined by 23% YoY.

    Endurance Technologies Ltd (IPO)

    Oct 4, 2016

    Equitymaster analyses Initial Public Offering (IPO) of Endurance Technologies Limited

    GNA Axles Limited (IPO)

    Sep 14, 2016

    Should you subscribe to GNA Axle IPO?

    Exide Ind.: Strong Start to the Year (Quarterly Results Update - Detailed)

    Jul 28, 2016

    Exide Industries has reported a 14% YoY and 10% YoY growth in revenues and net profits respectively for the quarter ended June 2016.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 23, 2017 09:59 AM


    • Track your investment in EXIDE INDUSTRIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks



    Compare Company With Charts