Exide Industries’ Q1 Profit Beats Estimates, But Margins Declines
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Exide Industries’ Q1 Profit Beats Estimates, But Margins Declines

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Indian lead-acid battery maker Exide Industries reported a smaller-than-expected rise in first-quarterly profit on Friday, hurt by high raw material costs and rising expenses.

The Kolkata-based company said its net profit after tax for the quarter ended 30 June stood at Rs 242 crore, compared with Rs 226 crore.

Analysts on average expected a profit of Rs 266 crore, according to Refinitiv data.

Raw material costs “remained firm” during the quarter, and total expenses grew nearly 4 per cent to Rs 3,770 crore, the company said in a statement.

“We expect overall demand scenario to be positive in the near-term and profitability levels to increase, supported by easing of input cost inflation and further realisation of cost efficiency initiatives”, Managing Director and Chief Executive Subir Chakraborty said in a statement.

The company, which has clients in the auto, industrial, telecom and railway sectors, reported a nearly 4 per cent rise in its revenue from operations to Rs 4,073 crore.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margins expanded 10.6 per cent from 9.9 per cent a year earlier, the company said in an exchange filing.

Auto parts suppliers in the country have benefited during the April-June quarter from demand for new models and the festive season.

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