Exide Industries - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 154, MCap: Rs. 13,090 crore)

Exide Industries' (EIL) Q1FY21 performance comprehensively beat our estimates on all operational parameters.

Q1FY21 Earnings Summary

- Net sales for the quarter stood at Rs. 1,548 crore, down 44% YoY vs. (I Direct estimate: of Rs. 801 crore). Management commentary pointed to pressure in OEM sales on the automotive side, however it said that replacement and UPS battery sales were strong

- EBITDA for the quarter came in at Rs. 148 crore (down 63.6% YoY, down 45.1% QoQ) with corresponding EBITDA margins stood at 9.6%, down 356 bps QoQ (I Direct estimate Rs. 28 crore, 3.4%). While gross margins declined 695 bps sequentially, other expenses as percentage of sales came down by 471 bps and limited the margin damage

- Consequent PAT in Q1FY21 came in at Rs. 44 crore, down 80.4% YoY (I Direct estimate: loss of Rs. 40 crore). Better than expected sales and margin prints helped deliver profitability beat

- At the consolidated level, the company's life insurance business posted EBIT loss of ~Rs. 44 crore

We continue to like EIL in the domestic battery space for its firm plans on the lithium-ion front and relatively inexpensive valuations vs. its competitors. We would be coming out with a detailed report soon.

Shares of EXIDE INDUSTRIES LTD. was last trading in BSE at Rs.154.3 as compared to the previous close of Rs. 155.65. The total number of shares traded during the day was 215830 in over 5322 trades.

The stock hit an intraday high of Rs. 159.4 and intraday low of 151. The net turnover during the day was Rs. 33792395.

Source : Equity Bulls

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