April 27, 2009
1
4QFY2009 Result Update
Exide Industries
BUY
Price
Rs54
Target Price
Rs61
Investment Period
12 months
Stock Info
Sector
Auto Ancillary
Market Cap (Rs cr)
4,300
Beta
0.5
52 WK High / Low
81/34
Avg Daily Volume
158084
Face Value (Rs)
1
BSE Sensex
11,372
Nifty
3,470
BSE Code
500086
NSE Code
EXIDEIND
Reuters Code
EXID.BO
Bloomberg Code
CHLR@IN
Shareholding Pattern (%)
Promoters
48.9
MF/Banks/Indian FIs
32.2
FII/ NRIs/ OCBs
8.1
Indian Public
10.8
Abs.
3m
1yr
3yr
Sensex (%)
26.3
(33.6)
(3.9)
Exide Ind (%)
26.0
(26.5)
101.5
Net Sales flat, Net Profit up 8.6%: Exide Industries, India’s largest Auto
Battery manufacturer, for 4QFY2009 clocked 0.5% yoy growth in Net Sales
to Rs799.5cr, which was largely in line with our estimate of Rs800cr, aided
by 18% Total Volume growth during the quarter. According to the company,
both its OE and Replacement sales improved in the fourth quarter compared
with the previous (3QFY2009) quarter. While OE sales increased by 10%,
Replacement sales moved up by almost 20%. However, as against
4QFY2008, OE demand was lower by 2% and there was a marginal growth
in Replacement sales. In the Industrial Segment, domestic Volume demand
increased 40% yoy. The company’s Bottom-line growth at 8.6% yoy to
Rs68.2cr, however, came in slightly above our estimate of Rs63.7cr.
Lower input cost helped improve Margins: During 4QFY2009, Exide
witnessed a 212bp yoy increase in EBITDA Margins owing to a 487bp yoy
fall in Raw Material costs, which accounted for around 64.7% of Sales
(68.5% in 4QFY2008). During the quarter, average lead prices fell on a qoq
basis by 4% to $1,221/tonne, while yoy average lead prices declined by
almost 58% from $2,900/tonne levels in 4QFY2008. However, benefits
arising from softening lead prices in the international market, to some extent,
was neutralised by the sharp depreciation of the Rupee against the Dollar.
Exide incurred Net Exchange loss