Mar 12: Exide Industries (BSE: 500086, NSE: EXIDEIND) is seen gaining on improved battery demand and Q3FY18 performance.
After a recent low of Rs 205, Exide has now climbed to 213 levels while Amara Raja Batteries Ltd (BSE: 500008, NSE:AMARAJABAT) has rebounded from a recent low of 773. On Monday trade, it rose 2.45% to Rs 812.95.
Rise in lead prices have put the battery firms in crisis which was reflected in the Q3FY18 results. The sharp rise in lead acid prices was offset partially with better sales due to improved vehicles demand. The battery makers passed on the increased lead costs in the replacemnet battery market while keeping the OEM market prices steady.
However, operating margins contracted and profitability contracted. Exide is trading at a PE of 28.14 while Amara Raja Batteries is trading at a PE of 29.26.
Exide reported 1.84% annualised growth in Q3FY18 net profit at Rs 154.27 cr while sales rose 31.95% to Rs 2,276.54 cr. Amara Raja Batteries reported 19.70% growth in net profit at Rs 134.45 cr while sales rose 16.98% to Rs 1,553.46 cr in Q3.