Exide Industries 1QFY17 earnings ahead of estimates aided by better than expected revenue growth and higher other income

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

Source: Company