India’s leading automotive battery manufacturer, renowned for its power storage solutions, faces mixed financial results in the latest quarter with marginal revenue growth but declining profits. The company makes headlines as it announces a significant Rs 300 crore investment in its subsidiary for developing a cutting-edge lithium-ion cell manufacturing facility, marking a strategic shift toward green energy solutions.
Share Price Movement
The share price of Exide Industries Limited went up 5.3 percent to Rs. 361.5 per share on Wednesday, an increase from its previous close of Rs. 343.35 per share. The market capitalisation now stands at approximately Rs. 30,115 crore as of January 29, 2025.
Q3 Financial Highlights
EMS Limited reported revenue of Rs. 4,017 crore in Q3 FY25, reflecting a 0.9% YoY growth from Rs. 3,980 crore in Q3 FY24 but a 9.7% decline QoQ from Rs. 4,450 crore in Q2 FY25. Profits stood at Rs. 158 crore, marking a 22.2% YoY decline from Rs. 203 crore in Q3 FY24 and a 32.2% QoQ drop from Rs. 233 crore in Q2 FY25.
Guidance
Exide will invest an additional Rs 300 crore in its subsidiary, Exide Energy Solutions, which plans to establish a greenfield multi-gigawatt lithium-ion cell manufacturing facility in India.
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Competitors
Amara Raja Batteries, Tata Green Batteries, Luminous Power Technologies, Eveready Industries India Ltd, and HBL Power Systems are key competitors of Exide Industries in automotive, industrial, and consumer battery markets.
Exide Industries has a P/E of 38.03, which is higher than the industry P/E of 22.16.
Market Outlook
The automobile industry saw strong growth, with total vehicle production rising to 29 million units. Passenger vehicles peaked, while two-wheelers showed double-digit growth. Domestic demand improved, but exports faced challenges. Exide expanded into lithium-ion battery manufacturing, investing Rs. 2,302 crore in Exide Energy Solutions Limited.
A 12 GWh cell plant is underway, with phase one completing by FY 2024-25. The merger of Exide’s energy subsidiaries streamlines operations, reinforcing its commitment to advanced battery solutions for mobility and grid applications.
Written By Fazal Ul Vahab C H
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