Exide Inds

The battery maker posted a set of lackluster numbers for Q4FY15. With both the automotive and industrial battery demand remaining subdued, it was good tightening of costs which helped. The company gets some 60% of its revenue from the automotive sector and balance from industrial. The company posted a net sales of Rs.1645 crore, up 2 %YoY) and kept the costs tightly leashed at Rs.1453 crore, up just 2% but remaining steady at 88% of net sales. Net profit came in at Rs.137 crore, up 4%.

EBITDA for the quarter was at Rs.238 crore, up 9% and margins actually improved from 13.62% to 14.41%. The company ended FY15 with a consolidated net profit of Rs.614 crore, up 13%. For the company, its main raw material is lead. Lead prices are low but the rupee depreciation almost negates any advantage. With the company’s concentration on high margin replacement markets, cut on marketing spends and improving sales in the auto sector, might help the company achieve its 15-16% operating margin target to be achieved this fiscal.