Exide Industries FY24 net profit up 17% YoY; Q4 profit grows 37%

Battery maker Exide Industries Ltd posted a 17 percent on-year growth in its net profit for the financial year 2024 on the back of robust growth in sales, calibrated price hikes and moderation in input cost inflation. Profit for the March quarter also rose 37 percent with the margin improvement.

The Kolkata-based company’s standalone net profit for the year came in at Rs 1,053 crore, against Rs 904 crore in FY23. Revenue from operations rose 10 percent to Rs 16,029 crore. Exide generates around 70 percent of its revenue from its automotive division, which supplies batteries to vehicle makers.

A combination of volume growth and improved product mix drove revenue. The management noted a strong pickup in all product categories in the automotive division during the second half of the year. The aftermarket side was impacted in the first half of the year.

EBITDA, or operating profit, rose 19 percent to Rs 1,871 crore while the EBITDA margin expanded to 11.7 percent from 10.7 percent in FY23. Profitability was supported by improvement in sales, calibrated price hikes, and lower raw material costs.

Cost of raw materials consumed as a percentage of revenue from operations declined to 70.3 percent from 71.9 percent in FY23. “Even though raw material prices have largely remained range-bound in the last few quarters, we have taken calibrated price hikes, which have supported the margin,” the management said in a post-earnings call.

Meanwhile, for the fourth quarter ended March, Exide’s net profit was at Rs 284 crore, compared with Rs 208 crore in the year-ago period. Revenue rose 13 percent on year to Rs 4,009 crore.

Volume growth in the automotive division’s domestic market was good with strong demand momentum in both OEM and aftermarket sides. In the industrial division, verticals such as UPS, solar and traction, recorded double-digit growth.

“Demand scenario was upbeat, and our diversified and technologically advanced product offerings helped us capture the opportunities across end customer markets,” the management said.

Exide’s fourth-quarter EBITDA jumped 41 percent on year to Rs 516 crore and EBITDA margin improved to 12.9 percent from 10.4 percent in the year-ago period.