Exide Industries rose 2.54% to Rs 175.30 after the company's consolidated net profit jumped 22.7% to Rs 241.20 crore on 13.3% increase in net sales to Rs 3,841.13 crore in Q2 FY23 over Q2 FY22.
EBITDA stood at Rs 412 crore in Q2 FY23 compared to Rs 413 crore in Q2 FY22 as high input costs continue to impact profits on a year on year basis. However, EBITDA margin increased to 11.1% in Q2FY23 compared with 9.9% in Q1FY23.
The company said its effective cost optimisation initiatives continued to lower fixed costs. Total expense rose 13.5% YoY to Rs 3,409.65 crore in Q2 FY23. Cost of raw material consumed stood at Rs 2,737.61 crore (up 5.6% YoY) and employee expenses stood at Rs 257.89 crore (up 6.5% YoY). Finance cost surged 58% to Rs 18.09 crore during the period under review.
Net cash generated from operating activities stood at Rs 999.7 crore in six months ended 30 September 2022 compared with Rs 131.21 crore in six months ended 30 September 2021.
Subir Chakraborty, managing director and CEO, said "Sales growth of 13% and 32% respectively during second quarter and first half of the year is driven by uptick in volumes and our judicious pricing strategies across verticals. Easing of unprecedented inflationary pressures in input costs and benefits of the cost optimisation strategies have contributed to margin increase."
Exide has been one of India's most reliable battery brands, enjoying unrivalled reputation and recall. Exide designs, manufactures, markets, and sells the widest range of lead acid storage batteries in the world from 2.5Ah to 20,200Ah capacity, to cover the broadest spectrum of applications.
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