Indian lead-acid battery maker Exide Industries reported a smaller-than-expected rise in first-quarterly profit on Friday, hurt by high raw material costs and rising expenses.
The Kolkata-based company said its net profit after tax for the quarter ended 30 June stood at Rs 242 crore, compared with Rs 226 crore.
Analysts on average expected a profit of Rs 266 crore, according to Refinitiv data.
Raw material costs “remained firm” during the quarter, and total expenses grew nearly 4 per cent to Rs 3,770 crore, the company said in a statement.
“We expect overall demand scenario to be positive in the near-term and profitability levels to increase, supported by easing of input cost inflation and further realisation of cost efficiency initiatives”, Managing Director and Chief Executive Subir Chakraborty said in a statement.
The company, which has clients in the auto, industrial, telecom and railway sectors, reported a nearly 4 per cent rise in its revenue from operations to Rs 4,073 crore.
Earnings before interest, taxes, depreciation and amortization (EBITDA) margins expanded 10.6 per cent from 9.9 per cent a year earlier, the company said in an exchange filing.
Auto parts suppliers in the country have benefited during the April-June quarter from demand for new models and the festive season.
