Exide Industries’ Q1 FY25 results, announced on July 30, 2024, showcased a mixed performance, the company reported a 15% year-on-year increase in standalone net profit, reaching ₹280 crore. However, this figure fell short of analyst expectations, who had predicted an average profit of ₹331 crore.
Exide Industries Q1 FY25 Results Key Points:
- Profit Increase: Exide Industries did achieve a 15% year-on-year growth in net profit for Q1 FY25.
- Missed Expectations: The reported profit missed analyst estimates by a significant margin.
- Higher Commodity Costs: The company attributed the lower-than-expected profit to the increased cost of raw materials.
- Rising Expenses: In addition to commodity costs, the company also faced rising overall expenses, further impacting profitability.
- Positive Outlook: Despite the challenges in Q1, Exide Industries maintains a positive outlook for the near term, expecting demand to remain strong and profitability to improve as input cost inflation eases and cost efficiency initiatives are realized.
Exide Industries’ Q1 FY25 Results Impact on Stock Price:
Following the announcement of the Q1 results, Exide Industries’ shares experienced a decline, dropping by 4% on the NSE. However, they partially recovered by the end of the trading day. Despite the short-term dip, the company’s stock has performed well overall, with significant gains year-to-date and over the past 12 months.
The company expects the overall demand scenario to be positive in the near term. Exide Industries anticipates increased profitability levels due to easing input cost inflation and further realization of cost efficiency initiatives. The company serves clients in various sectors, including auto, industrial, telecom, and railway.
Overall, Despite the Q1 challenges, Exide Industries maintains a positive outlook for the near term. The company expects demand to remain strong across various sectors and anticipates improved profitability due to easing input cost inflation and further realization of cost efficiency initiatives.