Exide Industries held its Q2 FY25 earnings call, where management highlighted various growth aspects and provided guidance for the near term. Here are the key takeaways from the call:
- Automotive Replacement Demand: Strong demand was observed in the automotive replacement segment, while OEM demand remained modest during Q2.
- Contribution to Margins: Higher contributions from the auto segment, along with a decline in raw material prices, positively impacted margins.
- Led Acid Battery Business Outlook: The outlook for the lead-acid battery business remains optimistic in the near to medium term.
- Investments in Exide Energy Solutions: The company invested ₹550 crore till October in Exide Energy Solutions, underscoring its commitment to expanding its footprint in energy solutions.
- Automotive After-Market Growth: This vertical emerged as the strongest in H1, showing robust growth.
Additional insights from the call included:
- Double-Digit Growth in 2/3 of Business: Around two-thirds of Exide’s business segments experienced double-digit growth in H1.
- Auto Segment Recovery Expected: While the auto segment saw a decline, the management expects a comeback in the second half of the year, projecting stronger growth in H2 versus H1.
- Q3 Outlook for Inverter Batteries: Inverter battery demand may remain subdued in Q3, but the company anticipates a stronger Q4 performance.
Exide Industries’ management appears confident in its growth trajectory, with positive developments across its business lines despite temporary challenges in certain segments. This outlook suggests the company’s potential for sustainable growth in the automotive and energy solutions markets.
