Electric vehicle battery stock surged by 5% following the announcement of a new lithium-ion cell manufacturing facility
Electric vehicle battery : India’s premier automotive battery manufacturer, known for its innovative power storage solutions, recently reported mixed financial results for the latest quarter. While the company experienced marginal revenue growth, profits declined. However, Exide Industries Limited made headlines by announcing a significant investment of Rs 300 crore in its subsidiary to develop a state-of-the-art lithium-ion cell manufacturing facility, showcasing a strategic shift towards green energy solutions.
Share Price Movement
On Wednesday, the share price of Exide Industries Limited surged by 5.3 percent to Rs. 361.5 per share, up from its previous close of Rs. 343.35 per share. The market capitalization now stands at approximately Rs. 30,115 crore as of January 29, 2025.
Q3 Financial Highlights
In Q3 FY25, Exide Industries Limited reported revenue of Rs. 4,017 crore, representing a 0.9% year-over-year growth from Rs. 3,980 crore in Q3 FY24. However, there was a 9.7% quarter-over-quarter decline from Rs. 4,450 crore in Q2 FY25. Profits stood at Rs. 158 crore, marking a 22.2% year-over-year decline from Rs. 203 crore in Q3 FY24 and a 32.2% quarter-over-quarter drop from Rs. 233 crore in Q2 FY25.
Guidance
Exide Industries Limited plans to invest an additional Rs 300 crore in its subsidiary, Exide Energy Solutions, to establish a greenfield multi-gigawatt lithium-ion cell manufacturing facility in India.
Competitors
Key competitors of Exide Industries in the automotive, industrial, and consumer battery markets include Amara Raja Batteries, Tata Green Batteries, Luminous Power Technologies, Eveready Industries India Ltd, and HBL Power Systems.
Exide Industries has a price-to-earnings ratio of 38.03, which is higher than the industry P/E of 22.16.
Market Outlook
The automobile industry experienced significant growth, with total vehicle production reaching 29 million units. Passenger vehicles reached their highest point, while two-wheelers showed impressive double-digit growth. Although domestic demand showed improvement, exports encountered some challenges. Notably, Exide made a strategic move into lithium-ion battery manufacturing by investing Rs. 2,302 crore in Exide Energy Solutions Limited.
Furthermore, a 12 GWh cell plant is currently under construction, with the first phase expected to be completed by FY 2024-25. The merger of Exide’s energy subsidiaries has streamlined operations, demonstrating the company’s dedication to providing cutting-edge battery solutions for both mobility and grid applications.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.