Exide Industries 1QFY17 earnings were ahead of estimates led by better than expected revenue growth and a higher other income
Key result highlights
· Net sales for the quarter were up 12% yoy to Rs20bn (ahead of estimate of Rs19bn). Revenue growth would likely have been driven by a strong demand for Invertor batteries – since it’s the seasonally best quarter for the segment
· EBIDTA margins were up 90bps yoy (+50bps qoq) to 15.7% and were in line with estimates.
· Higher than expected other income at Rs143mn (compares to 1QFY16 other income at Rs31mn and our estimate of Rs40mn) boosted PAT for the quarter
· A lower tax rate at 29.6% (Vs estimate of 31%) also aided earnings growth
· Overall, PAT for the quarter was up 26% yoy to Rs1.96bn – ahead of our estimate of Rs1.8bn
· We will try to speak to the management for further details on the earnings.
· We have an In-Line rating on the stock.
Fig1: Exide Industries quarterly performance