Exide Inds

The battery maker posted a very good robust set of numbers, helped by strong sales and upbeat volumes. Net sales for Q1FY17 came in at Rs.2008 crore, up 11% (YoY). The company managed to keep a tight leash on the costs. Raw material costs rose 17% and overall expenses were up10% but as a percentage to net sales, it remained steady at 87%. Operating profit was at Rs.266 crore, up 16% and it ended the quarter with a net profit of Rs.196 crore, up 26%. Other income showed a sharp rise to Rs.14 crore though there is no word on what it comprised of.

The company’s equity stands at Rs.85 crore and EPS for the quarter was at Rs.2.31 (FV of Re.1). Lead prices,which is its main raw material have been on an upward trajectory, with prices currently at Rs.1900/tonne levels compared to $1800/tonne – an average in Q1FY17. In the coming months, higher volumes can help offset the rise in lead prices.