Exide Industries announced first quarter results of the financial year 2016-2017 (1QFY17). The company has reported a 14% YoY and 10% YoY growth in revenues and net profits respectively. Here is our analysis of the results.
Performance summary
- Revenues grow by 14% YoY during 1QFY17 as demand for both automotive and industrial batteries show some improvement.
- Operating margins improve by 0.7% to 15.7% during the quarter on account of lower staff costs and other expenditure (as percentage of sales).
- Net profits grow by 10% YoY, lower than the growth in operating profits on account of the reduction in other income and higher tax expenses.
Standalone financials: A snapshot
(Rs m) |
1QFY16 |
1QFY17 |
Change |
Net sales |
17,656 |
20,111 |
13.9% |
Expenditure |
15,004 |
16,961 |
13.0% |
Operating profit (EBDITA) |
2,652 |
3,150 |
18.8% |
EBDITA margin (%) |
15.0% |
15.7% |
|
Other income |
226 |
143 |
-36.9% |
Depreciation |
439 |
491 |
11.8% |
Interest |
0 |
17 |
|
Profit before tax |
2,439 |
2,784 |
14.2% |
Tax |
662 |
824 |
24.4% |
Profit after tax / (loss) |
1,776 |
1,961 |
10.4% |
Net profit margin (%) |
10.1% |
9.7% |
|
No. of shares (m) |
850.0 |
850.0 |
|
Diluted earnings per share (Rs)* |
|
7.8 |
|
Price to earnings ratio (x)* |
|
22.8 |
|
* based on 12 month trailing earnings & excluding extraordinary items
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