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Key Points

Exide Industries experienced a challenging quarter with an 11% drop in net profit despite modest revenue growth. The company attributed the decline to rising raw material costs, particularly antimony, which impacted profit margins. Despite the setback, Exide demonstrated resilience through strong performance in mobility and solar segments. The company is strategically investing in future technologies, with a significant Rs 1,200 crore commitment to lithium-ion cell manufacturing.

Key Points: Exide Industries Q4 Profit Drops 11% Amid Raw Material Challenges

  • Company maintains zero debt with Rs 1,298 crore operational cash flow
  • Mobility and solar segments show double-digit growth
  • Announces Rs 1,200 crore investment in lithium-ion cell plant
  • Full-year profit rises 3% to Rs 1,077 crore
2 min read

Exide Industries Q4 net profit falls 11 pc to Rs 254.6 crore

Exide Industries reports Q4 net profit decline, navigating raw material costs while expanding into lithium-ion cell manufacturing

"The EBITDA margin slipped to 11.2 per cent due to rising raw material costs - Exide Industries Financial Report"

New Delhi, April 30

Exide Industries on Wednesday reported an 11 per cent decline in its net profit for the March quarter (Q4 FY25), with the figure standing at Rs 254.60 crore compared to Rs 283.75 crore in the same quarter last fiscal.

The fall in profit came despite a modest 4 per cent increase in revenue from operations, which rose to Rs 4,159.42 crore from Rs 4,009.39 crore in the year-ago period, according to the company's exchange filing.

The company said its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter came in at Rs 467 crore, lower than Rs 516 crore reported in the same quarter of the previous financial year.

The EBITDA margin slipped to 11.2 per cent due to rising raw material costs, particularly antimony, which significantly impacted margins over the past six months.

For the full financial year ending March 2025, Exide reported a 3 per cent increase in profit after tax to Rs 1,077 crore.

The company maintained a strong liquidity position with zero debt and healthy cash flows. Cash flow from operations for FY25 stood at Rs 1,298 crore.

Exide said that during the March quarter, demand in the replacement market for both two-wheelers and four-wheelers remained strong, contributing to double-digit growth in the mobility business.

The industrial UPS segment also benefited from growing demand for power backup solutions, and the solar business witnessed double-digit growth driven by solarisation programmes.

However, the home-UPS business was impacted by a weak season and a higher base, while the automotive OEM business suffered due to lower demand from vehicle manufacturers.

The industrial infrastructure business performance improved in the fourth quarter with better order inflow and execution, particularly in sectors like power, railways, and traction.

Looking ahead, the company's board has approved an additional investment of up to Rs 1,200 crore in its wholly owned subsidiary, Exide Energy Solutions Limited (ESSL).

This investment will support the development of a greenfield multi-gigawatt Lithium-ion cell manufacturing plant in India.

- IANS

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Reader Comments

Here are 6 diverse Indian perspective comments for the Exide Industries article:
R
Rajesh K.
Not surprising given how raw material costs have been rising across industries. The silver lining is their zero debt position and strong cash flows. The lithium-ion investment shows they're thinking long-term about India's EV future. 🇮🇳
P
Priya M.
As an investor, I'm concerned about the margin compression. 11% EBITDA margin is quite low for a market leader. Management needs to explain their strategy to tackle raw material price volatility better. The lithium play is exciting but risky - hope they execute well.
A
Amit S.
Double-digit growth in mobility and solar segments is impressive! Shows Exide is diversifying well beyond just automotive batteries. The ₹1200 cr investment in lithium-ion manufacturing is a bold move - exactly what India needs for energy independence.
S
Sunita R.
Mixed bag results. While replacement market doing well, OEM business suffering shows auto sector slowdown is real. Hope the new lithium plant creates jobs and brings down EV battery costs for Indian consumers. Make in India initiative needs more such investments!
V
Vikram J.
The numbers could have been worse given the market conditions. What I like is their conservative approach - no debt and strong cash position. The lithium gamble could pay off big time if they can compete with Chinese imports. Fingers crossed! 🤞
N
Neha P.
As a customer, I've always trusted Exide batteries. But with profits falling, I hope they don't compromise on quality or raise prices too much. Good to see them investing in future technologies - hope they maintain their market leadership in the EV era too.

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