 "Exide Industries gains 4% on pact with Hyundai Motor India for EV batteries")
Shares of Exide Industries gained up to 3.83 per cent at Rs 456.80 per share on the BSE in Friday’s early morning deals. Exide Industries share price surged after its subsidiary Exide Energy Solutions signed a binding agreement with Hyundai Motor India to supply lithium-ion cells and battery packs for Hyundai's EVs in India.
“We wish to inform you that Exide Industries has executed a binding term sheet (Term Sheet) on 19"' December 2024 with Hyundai Motor India Limited, a company belonging to the Hyundai Motor Company group, to enter into definitive agreements pertaining to the production and supply of battery cells for HMJL's electric vehicles dedicated to the Indian market,” the company said in an exchange filing on Thursday.
The company further stated that the company is expected to generate revenues from the supply of the products at prices to be determined as per the procedure prescribed in the term sheet and thereafter the definitive agreements.
Financially, Exide Industries reported a 14.14 per cent year-on-year (Y-o-Y) decline in net profit to Rs 231.28 crore for the second quarter of financial year 2024-25 (Q2FY25), down from Rs 269.4 crore. However, on a quarterly basis, the profit increased by 5 per cent.
Revenue rose by 1.8 per cent Y-o-Y to Rs 4,450 crore Q2FY25, compared to Rs 4,371.52 crore a year ago, with a marginal quarter-on-quarter (Q-o-Q) increase of 0.32 per cent.
The company's Ebitda margin for the current quarter stood at 11.3 per cent, slightly lower than the 11.8 per cent reported in the same quarter last year.
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Meanwhile, on the equities side, Exide Industries’s stock has underperformed the market, in the last six months it has fallen 23 per cent, while surging 53 per cent in the last one year. In comparison BSE Sensex has risen 2 per cent in the last six months and 12 per cent in a year.
The company has a total market capitalisation of Rs 37,582.75 crore. Its shares are trading at a price to earnings multiple of 34.12 times and at an earning per share of Rs 12.96.
At 11:11 AM; the shares of the company were up 0.49 per cent at Rs 442.10 a piece. By comparison, the BSE Sensex was trading 0.03 per cent higher at 79,245.16 level.