Summary Links:
* Summaries created by AI. Please verify by checking the actual call transcript.
Exide Industries Q4 FY24 Earnings Call Summary
Submission Details • Date of submission: May 30, 2024 • Earnings call date: May 24, 2024 • Submitted to: Calcutta Stock Exchange, National Stock Exchange of India, BSE Limited • Key executives present: Avik Roy (MD & CEO), Asish Kumar Mukherjee (CFO), Aakash Gopani (Moderator)
Financial Performance Highlights • Q4 Sales Growth: 13% • EBITDA Margin: Increased by 250 basis points to 12.9% • Full-Year Sales Growth: 10% • Key Drivers: Strong demand in automotive (especially four-wheelers) and industrial sectors, supported by government infrastructure spending.
Lithium-Ion Manufacturing Expansion • Investment Plans: Expansion through Exide Energy Solutions Limited with significant investments. • Partnerships: Collaboration with Hyundai and Kia. • Expected Margins: Mid-teens once full capacity is reached.
Capacity and Demand Insights • Lead-Acid Battery Capacity: Adjustments ongoing to meet demand; recent capital expenditures around INR 500 crores. • Pricing Strategy: Indexed to raw material costs; competitive with imports.
Agreements and Collaborations • Non-Binding Agreement: With Hyundai and Kia for lithium-ion batteries; details still being finalized. • SVOLT Collaboration: Includes milestone-based payments; planning for Phase 2 production contingent on Phase 1 capacity visibility.
Market Outlook and Sustainability • Lead-Acid Battery Market: Transition to lithium-ion will be gradual; lead-acid batteries still valuable in certain applications. • EBITDA Margin Sustainability: Targeted in the 12% to 14% range; operational actions in place to support stability amidst commodity price volatility.
Lithium-Ion Business Development • Customer Orders: Initial production reliant on imports; local supply chains expected to develop as capacity increases. • Production-Linked Incentive (PLI) Scheme: Exide not participating due to project progress constraints.
Recycling and EPR Obligations • Lead Acid Battery Growth: 13% value growth in Q4; volume growth aligned. • Recycling Operations: Internal unit to handle significant lead-acid battery needs; over 60-70% sourced from Chloride Metals.
Funding and Financial Management • Project Funding: Primarily from internal accruals; bridge loans may be necessary for cash flow management. • Sales Distribution: 75% from aftermarket, 20% from OEMs, 5% from exports; noted decrease in aftermarket share this quarter.
Conclusion • Avik Roy thanked participants and invited further questions, emphasizing Exide's confidence in its market position and future opportunities.
Exide Industries Limited Q2 FY24 Earnings Conference Call Summary
Key Highlights • Robust Growth in Lead-Acid Battery Sector • Improved profit margins noted. • Confidence in growth in both lead-acid and lithium-ion markets.
• Lithium-Ion Market Developments • Production project on track; plans to start with Lithium-ion Phosphate (LFP) and NCM chemistries. • Strong anticipated demand with no concerns about capacity evacuation.
Industrial Segment Insights • Growth Opportunities • Industrial segment growth driven by smart cities, data centers, and power plants. • Exide is a market leader in most industrial segments, particularly in traction batteries for German OEMs.
• Export and Anti-Dumping Duties • Adaptation of product configurations to mitigate anti-dumping duties affecting automotive exports.
Future Product Expansion and Strategy • Focus on Core Business • Plans to concentrate on core business rather than diversifying into unrelated products. • Battery pack revenues included in Nexcharge subsidiary's financials.
• In-House Cell Production • Current reliance on imported cells from SVOLT; plans to manufacture cells in-house. • Homologation process for the cell plant has begun.
Financial Overview • Investment Plans • Total investment budget remains at Rs. 4,500 crores, with Rs. 4,000 crores allocated for equipment. • Annual CAPEX for lead-acid factory projected at Rs. 500 crores.
• Growth Metrics • 10% year-on-year growth in lead-acid business volumes. • Exports account for 9% of total revenue, with plans for gradual growth.
Market Outlook • Lithium-Ion Battery Segment Potential • Significant growth potential noted, with the market still in its early stages in India. • Confidence in coexistence of lead-acid and lithium-ion technologies.
• EBITDA Margins and Cost Optimization • Ongoing efforts to improve EBITDA margins, targeting 14.5% to 15%. • Positive results from cost optimization despite rising lead costs.
Conclusion • Future of Battery Technologies • Lead-acid batteries expected to remain vital, especially in auxiliary applications for EVs. • Engagement Acknowledgment • Subir Chakraborty thanked participants for their engagement during the call.
Exide Industries Limited Q4 FY23 Earnings Call Summary
Key Executives and Performance • Date of Call: May 11, 2023 • Key Executives: Subir Chakraborty (Managing Director), Asish Kumar Mukherjee (CFO) • Performance Highlights: • 18% growth in sales and profit before tax for FY23. • Growth driven by OEM demand in the automotive sector. • Strong demand in industrial segments (UPS, solar).
Future Growth and Investments • International Expansion: Plans to enhance global presence and product portfolio. • Lithium-ion Project: • Investment of INR 715 crores, with an additional INR 500-600 crores planned for FY24. • Production expected to start by end of FY25, aiming for optimal utilization within three years. • New Orders: Secured orders worth INR 600-700 crores in various sectors.
Market Outlook • Replacement Market: Positive outlook for recovery post-COVID in FY24. • Margin Improvement: Initiatives focusing on digitalization and cost optimization. • Export Growth: Notable growth in exports, especially in enhanced flooded batteries.
Competitive Positioning • First-Mover Advantage: Exide's lead in lithium-ion battery manufacturing. • Operational Benefits: Local manufacturing reduces reliance on imports and enhances profitability. • Strategic Partnerships: Collaboration with SVOLT for raw material sourcing.
Demand Forecast and Technology • Lithium-ion Demand: Projected increase in demand from 100 GWh to 150 GWh by 2030. • Multi-Chemistry Approach: Emphasis on adapting to future energy demands with various battery technologies.
Challenges and Risks • FAME Scheme Impact: Potential non-extension could affect orders for 2-wheelers and 3-wheelers. • Raw Material Procurement: No mandatory sourcing requirements for lithium-ion plant.
Conclusion • Market Dynamics: Lead acid batteries expected to coexist with emerging technologies. • Future Outlook: Confidence in order pipeline and profitability in lithium-ion segment.