Exide Industries Faces Profit Dip Amid Rising Raw Material Costs

Exide Industries reports an 11% drop in profit after tax due to rising raw material costs. Despite a revenue increase, margins were impacted. The company plans a substantial investment in lithium-ion battery production as demand for their UPS and solar solutions surges.

In a recent filing, Exide Industries reported an 11% decrease in standalone profit after tax, totaling Rs 254.60 crore for the March quarter compared to the previous year. Revenue from operations rose by 4% to Rs 4,159.42 crore, showcasing growth despite the profit dip.

The company's EBITDA margins decreased to 11.2%, influenced by significant increases in raw material costs like antimony. However, their liquidity remains strong, with zero debt and robust cash flow generation of Rs 1,298 crore for the fiscal year 2024-25.

Amid challenges, Exide witnessed a surge in replacement market demand for mobility products and double-digit growth in their industrial UPS and solar businesses. The board has approved an investment of up to Rs 1200 crore in expanding lithium-ion cell manufacturing capabilities to meet future demands.

(With inputs from agencies.)