Exide Industries reported an 11.38 per cent year-on-year (YoY) increase in consolidated net profit to Rs 198.61 crore in Q3FY23, led by growth in most business verticals, price hikes and cost optimisation initiatives. In the year-ago period, profit was at Rs 178.32 crore.
Revenue from operations was up 6.8 per cent to Rs 3,538.50 crore, driven by volume growth. The company said in the automotive vertical, overall volumes in the replacement market continued to grow and demand from OEMs was strong as supply-side constraints abated with chip supplies increasing globally. Strong demand was also seen in industry verticals such as railways, projects, telecom, solar and traction.
Commenting on the performance, Subir Chakraborty, MD & CEO, said the firm's operating profit margin rose quarter-on-quarter in Q3FY23 as raw material price inflation eased.
“In the coming months, we expect the demand scenario to be positive for both automotive and industrial verticals. We will continue to focus on increasing market share through our diversified product portfolio and pan-India distribution network,” Chakraborty said.
The company aims to improve margins by increasing the proportion of premium products in the sales mix and ‘aggressively’ driving cost optimisation initiatives.
The multi-gigawatt lithium-ion cell making project undertaken by Exide Energy Solutions Ltd, a wholly-owned subsidiary near Bengaluru, was progressing well and on schedule, Chakraborty said.
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The company added that the board, at its meeting on December 12, 2022, decided to explore the possibility of the merger of two wholly-owned subsidiaries, Exide Energy Pvt Ltd (formerly Exide Leclanche Energy Pvt Ltd) and Exide Energy Solutions Ltd, both have similar lines of business.