Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian battery maker Exide Industries’ operations resumed in mid-May, after which the company ramped-up operations. The company reported revenue of Rs1,547.62 crore (Rs15.47bn or $206mn) in June quarter, 42pc lower compared to prior year period. The company’s net profit stood at Rs43.95 crore (Rs 439.5mn), down by 80pc from prior year. 


Much of the quarter (Q1) was lost due to COVID-19, impacting the company’s financial performance. The original equipment sales dragged Exide’s revenues as most of these businesses were also shut. 


In June quarter, demand from OEMs (Original equipment manufacturers) were subdued while demand from UPS batteries surged. Business volumes of other segments are gradually picking up, said the company. COVID-19 and consequent lockdowns disrupted supply chains, sales and distribution process, impacting the company’s operations negatively. Sales and profitability was hurt, according to the statement released by the company. 


Several steps were taken to operate under the ‘new normal’ conditions, including realigning of distribution infrastructure due to restricted mobility of goods and people. 


Exide and other battery manufacturers are likely to have a better quarter (Q3 and Q4) with auto sales improving. In July, passenger car and two-wheeler sales have improved significantly on June. Furthermore, replacement market is improving with batteries needing to be changed every few years. The replacement cycle keeps demand for batteries constant around the year, market participants told Davis Index.


($1= Rs 74.85)

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