X

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: Margins on the move - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 16, 2001

    Exide: Margins on the move

    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.

    (Rs m) 2QFY01 2QFY02 Change 1HFY01 1HFY02 Change
    Sales 2,463 2,015 -18.2% 4,049 3,778 -6.7%
    Other Income 1 1 -42.9% 4 4 -13.6%
    Expenditure 2,063 1,621 -21.4% 3,321 3,084 -7.1%
    Operating Profit (EBDIT) 401 394 -1.8% 729 694 -4.8%
    Operating Profit Margin (%) 16.3% 19.5%   18.0% 18.4%  
    Interest 125 117 -6.0% 255 247 -2.9%
    Depreciation 101 114 12.7% 210 227 8.0%
    Profit before Tax 177 164 -7.5% 269 224 -16.8%
    Extraordinary item (8) (10) 20.3% (16) (22) 34.4%
    Tax 29 32 10.5% 43 43 0.0%
    Profit after Tax/(Loss) 140 123 -12.7% 210 160 -24.1%
    Net profit margin (%) 5.7% 6.1%   5.2% 4.2%  
    No. of Shares (eoy) (m) 36.0 36.0   36.0 36.0  
    Diluted number of shares 36.0 36.0   36.0 36.0  
    Earnings per share (Rs)* 15.6 13.6   11.7 8.9  
    (*annualised)            

    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.

     

     

    Equitymaster requests your view! Post a comment on "Exide: Margins on the move". 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!

    More
    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

    EXIDE INDUSTRIES SHARE PRICE


    Aug 23, 2017 10:33 AM

    TRACK EXIDE INDUSTRIES

    • 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

    MORE ON EXIDE INDUSTRIES

    EXIDE INDUSTRIES 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE EXIDE INDUSTRIES WITH

    MARKET STATS