Exide Industries, the market leader in the automotive and industrial batteries segment, has reported a sharp 18.2% fall in sales in the second quarter ended September 30, 2001. The slowdown in the economy and subdued auto demand has affected volume growth of the company.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Earnings per share (Rs)*
Sales for the first half of the current financial year has fallen by 6.7% to Rs 3,778 m (Exide reported a 11% growth in sales in 1QFY02). The encouraging aspect is the sharp rise in operating margins in 2QFY02 by 330 points to 19.5%. This could be attributed to cost cutting initiatives taken by the company last year. But as margins fell sharply in 1QFY02, for 1HFY02, margins have increased by just 40 basis points. Nevertheless, this is a commendable performance.
The prospects for the second half of the year is not encouraging in light of the continuous fall in industrial production. Though agricultural output is expected to fare better, it remains to be seen how far it translates into higher volume growth and thus profitability.
The scrip is currently trading at Rs 43 at a P/E multiple of 4.8x annualised 1HFY02 earnings.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407