Exide Industries share price rose in early trade today despite the company reporting a net loss of Rs 13.5 crore in Q1 against a profit of Rs 161.6 crore, last year corresponding quarter. Share price of Exide Industries gained 6.93% to Rs 165.2 against previous close of Rs 154.50 on BSE.
Exide Industries stock is trading higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.
The stock has lost 11.44% in one year and 14.05% since the beginning of this year.
Total 2.59 lakh shares changed hands amounting to turnover of Rs 4.22 lakh crore. Market cap of the firm rose to Rs 13,604 crore. Meanwhile, revenue in Q1 fell 31.1% to Rs 2,526 crore against Rs 3,664.2 crore, in same quarter last year.
Commenting on earnings, Exide MD and CEO G Chatterjee said COVID-19 pandemic and the consequent lockdowns to curb its spread caused severe disruption in manufacturing, supply chain, and sales and distribution operations of the company.
"This has caused an adverse impact on its sales as well as profitability during the quarter. The company is focusing on cost control and technology upgradation as strategies to improve the bottom-line," he added.
After Q1 earnings, Edelweiss maintained buy call on the stock with a revised taret price of Rs 184 (Rs 205 earlier).
"Exide Industries 44% YoY dip in Q1FY21 sales came in line with consensus estimates, but 10% below our estimate as automotive OEM demand for batteries waned during the lockdown. We expect replacement volumes to touch FY20 peak in FY22. Net sales plunged 44% YoY in Q1FY21 with multiple challenges during the pandemic. Automotive OEM demand remained subdued during Q1FY21; however, demand in home UPS segment and via automotive trade channels improved. Further, operations were shut owing to the lockdown resuming mid-May, and scaled up thereafter, "the brokerage said.
Exide Industries Limited is a storage battery company. The company designs, manufactures, markets and sells a range of lead acid storage batteries. It operates through storage batteries and allied products, life insurance business and others segments.
Storage batteries and allied products segment includes the holding company and some of its subsidiaries manufacture lead acid storage batteries and allied products. Its manufacturing units are located in West Bengal, Haryana, Maharashtra, Tamil Nadu and Uttarakhand.