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Saturday, 3 December 2016


Exide Industries Ltd reported double digit growth in September quarter FY17. Revenue or Income From Operations, PAT and EBDITA all rose in double digits at 11%, 17% and 18% respectively.  Revenue rose 11% YOY from Rs. 19654 Mn to Rs. 21746 Mn in the current September quarter.  Sequentially growth rate was negative at 4% for Revenue compared to 28% quarterly growth in Q1 FY17. Net Profit grew at a higher rate of 17% yearly at Rs. 1813 Mn against Rs. 1551 Mn in the same period previous year. EBDITA stood at Rs. 3118 Mn compared to Rs. 2637 Mn in the same period previous year growing by 18% YOY whereas QOQ negative growth was 5% in the current September quarter. Expenditure jumped 11% YOY from Rs. 17478 Mn to Rs. 19324 Mn in the current September quarter. On quarterly basis there was decline of 3%. EBDITA margin improved 92 basis points YOY as Revenue growth outpaced rise in operating expenditure. Interest or Finance costs declined 66% QOQ at Rs. 5.80 Mn in the current September quarter vis-à-vis Rs. 17.10 Mn in previous June quarter. Tax expenditure constituting 4% of total revenue jumped 12% YOY in Q2 FY17. Taxation expense was reported at Rs. 792 Mn compared to Rs. 708 Mn in the same period previous year. Net Profit Margin was 8.34% against 7.89% same period previous year, improving by 45 basis points YOY. Other Income on the other hand was on a rising spree with a YOY jump of 125% and was reported at Rs. 190 Mn compared to Rs. 84 Mn in current Q2 FY16. 

We recommend BUY for the stock for medium & long term investment with PE multiple of 21.01x FY17E & 19.20 x FY18E. P/BV is seen at 2.87 x FY17E & 2.50 x FY18E with a target price of Rs. 230.

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