India-based battery manufacturer Exide Industries remains extremely positive of demand from the automobile and UPS battery replacement market.
The company’s performance in the first quarter was healthy despite the second wave of COVID-19. Exide achieved growth in both the automotive business and industrial sector despite business disruptions through the quarter. Demand from infrastructure, OEM and exports increased and registered a better-than-expected growth in Q1.
Exide posted a net turnover of Rs24.86bn ($334mn) in Q1 (April-June), up by 61pc from a year ago. While PAT grew in Q1 to Rs1.25bn, up by 185pc from a year ago.
Improvement in automobile sales in Q1 augurs well for the battery industry, said Exide in the recently published annual report. As many people opt out of public transport for personal vehicles, OE (original equipment) demand will get a boost, and there should be a rise in demand for replacement batteries.
Market liquidity, however, remains the biggest threat. The Industrial UPS division expects a surge in demand from emerging technological infrastructure, healthcare infrastructure, educational, BFSI verticals, work-from-home and the replacement market, noted Exide in the report.
($1=Rs74.4)