Exide Industries Ltd, a prominent manufacturer of automotive and industrial batteries, has increased its investment by ₹1,100 crore in its subsidiary EESL, a greenfield lithium-ion plant builder. This move brings the total potential equity to ₹3,000 crore, inclusive of a ₹440 crore investment made in October 2023.
In Q2 2023, Exide reported a consolidated profit after tax (PAT) increase of 12.11% to ₹270.32 crore (INR100 crore = approx. USD12 million) compared to ₹241.12 crore during the same period last year. The company's revenue reached ₹4,371.52 crore against ₹3,841.13 crore a year ago.
CEO Subir Chakraborty attributed the 10% sales growth in the automotive and industrial sectors to reduced input costs and strategic cost optimization. The automotive division experienced demand boosts from original equipment manufacturers (OEMs) and the replacement market. The industrial division also saw robust sales growth, driven by investments in sectors like solar, telecom, railways, infrastructure, and financial services.
The company's expenses escalated to ₹4,043.57 crore from ₹3,550.31 crore due to these strategic initiatives and investments. Chakraborty expressed optimism about near-to-medium-term demand and is confident that Exide's future-ready products and cost efficiencies will sustain profitable growth.
Exide's lithium-ion cell manufacturing project is progressing well and is expected to serve the rapidly growing electric mobility space and stationary applications once operational. This project aligns with the company's strategy of catering to rising demand in the OEM and replacement sectors with a future-ready product portfolio and pan-India market presence.
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