Indian battery manufacturer, Exide Industries, revealed that strong growth in automotive and industrial sector resulted in strong performance in March-ending quarter. The company notes that margins were however squeezed owing to high raw material prices.
Net turnover reported by Exide stood at Rs29.39bn ($0.39bn) in Q4, up 43pc from the prior year quarter. Profit after tax in Q4 stood at Rs2.44bn, up 45pc from the year prior Q4.
For FY21, net turnover stood at Rs100.41bn, up 2pc from the year prior and profit after tax was Rs7.58bn, down 8pc from the previous year.
The automotive aftermarket demand sustained its growth in the quarter. Demand for automotive and UPS batteries was solid, said management of Exide.
For battery makers, raw material includes secondary lead ingots, which traded at its year-high levels in March quarter. Davis prices show that average prices for secondary lead ingot in Q4 was around Rs155,000/mt, which was around Rs145,000/mt in the prior year quarter. Lead prices have gained almost 20pc in the last three quarters, according to Exide.
With government’s push for electrification of two-wheelers, demand for lead batteries is under risk. However, market participants believe that lead market will be unchanged as industrial demand for lead will be strong for another five to seven years.