India’s Exide Industries reported first quarter profit after tax of ₹2.8 billion ($33.4 million) on 30 July. This was up 15.6% from the same quarter the previous year but lower then market expectations.
The company said operating revenue was up 5.9% to ₹43.1 billion ($514.7 million) with volume growth seen across its business. Higher materials costs (lead and aluminium) dented profits, it said, but added the revenue growth and cost optimisations meant a rise in EBITDA.
The lead-acid battery maker said it is seeing healthy demand in the automotive sector, both in the domestic and international markets. An Exide insider who did not wish to be named said the company has been exporting SLI AGM batteries to the North American market, as producers have been unable to keep up with the strong demand there.
Public and private investments in industrial sectors such as IUPS, solar, traction and railways continue to deliver strong volume, it said. Battery makers appear set to benefit as sales of electric vehicles are expected to rise 66% this year in India after nearly doubling in 2023, according to a report in April from research firm Counterpoint.
Exide Industries’ CEO Avik Roy said sales growth of 6% and pre-tax profit growth of 16% represent “a perfect start to the year.” He said its 12GWh lithium-ion gigafactory project is progressing, with construction and installation of production line equipment underway, along with recruitment and training, and supply chain building. It will supply modules and packs to India’s EV and stationary sectors.
