Exide Industries Ltd posted nearly 81 per cent rise in standalone net profit at ₹226 crore for the quarter ended June 30, 2022, compared with ₹125 crore in the same quarter last year.
Revenue from operations on a standalone basis grew by 57 per cent to ₹3,899 crore ( ₹2,486 crore).
Despite high input cost inflation, PBT has grown by 85 per cent year-on-year in Q1FY23 supported by revenue growth and lower fixed expenses as a percentage to sales. PBT margin has also increased to 7.8 per cent in Q1FY23 from 6.6 per cent in Q1FY22.
Total fixed expenses (employee costs and other expenses) were 18 per cent of sales in Q1FY23 against 21 per cent last year. The company’s efforts towards cost optimisation have helped lower fixed costs significantly, Exide said in a press release.
The company attributed the growth to demand across industrial verticals, which it said was significantly upbeat than the previous year, especially in the I-UPS, solar and power and project segments.
Pick-up in commercial and business activity is contributing to overall buoyancy in the market, it said. In the automotive vertical, volumes jumped sharply this quarter against the same quarter last fiscaldriven by strong demand, primarily from the replacement market.
The company continues to increase its presence in global markets, with exports growing at a much faster pace, both in automotive and industrial verticals.
Exide, through its wholly owned subsidiary company, Exide Energy Solutions, has procured 80 acres for the lithium-ion cell manufacturing project in Karnataka and it is progressing as per the desired timelines, it said.
“We expect the demand scenario to remain buoyant in near term, both in automotive and industrial verticals. This combined with expected stabilisation/softening of commodity prices is likely to support growth and operating margins in the immediate future,” Subir Chakraborty, MD and CEO Exide, said in the release.