Exide Industries Posts Q2 Profit Rise As Input Costs Ease

Indian battery maker Exide Industries Ltd described a better-than-expected next-quarter gain on Friday driven by an boost in volumes and easing input charges.

There was also an uptick in demand from customers from the substitute and the primary gear producer (OEM) segments as demand for passenger automobiles surged, with automakers reporting powerful revenue.

Exide’s gain rose 5.13% to 2.46 billion Indian rupees ($30.43 million) in the June-September quarter, as opposed with 2.34 billion rupees a calendar year back, the business mentioned in an exchange submitting.

Analysts on average had expected a earnings of 2.36 billion rupees, in accordance to Refinitiv IBES info.

The automotive and industrial sectors had been below strain owing to pandemic-induced provide-chain crunches and as uncooked content rates rose following Russia’s invasion of Ukraine.

However, the sectors observed some relief as rates of commodities such as direct and crude oil cooled off and supply-chain constraints progressively eased.

More, the industrial vertical witnessed a sturdy restoration from the earlier yr as enterprise action picked up, the organization reported.

“We expect buoyant demand situation to stay in the medium-time period across most verticals and margin recovery to be supported by respite in enter charges to some extent,” Subir Chakraborty, controlling director and main govt officer, reported.

Income from functions rose 13.04% to 37.19 billion rupees in the next quarter from 32.90 billion rupees a calendar year in the past.

Up to past near, shares were being up 4.63%% YTD.