Several auto parts makers, including battery manufacturers like Exide, have relied on customers replacing older vehicle parts with newer ones to offset the impact of slowing new car sales.Indian battery maker Exide Industries reported third-quarter profit below analysts' estimates on Tuesday, hurt by sluggish vehicle sales. The company's standalone profit after tax rose 2% to 2.45 billion rupees (USD 28.3 million) in the October-December quarter, falling short of analysts' estimate of 3.09 billion rupees, according to data compiled by LSEG.
Exide, which is one of India's biggest battery makers and gets nearly 70% of its sales from automotive clients, has now missed profit estimates for a third straight quarter.
While battery replacements on automobiles remained strong, demand from manufacturers of new vehicles was muted in the quarter, the company said.
Several auto parts makers, including battery manufacturers like Exide, have relied on customers replacing older vehicle parts with newer ones to offset the impact of slowing new car sales.
Car sales rose 4.5% in the December quarter, helped partly by festive demand, albeit at a slower rate than the 8.3% growth seen in the year-earlier period.
Exide's revenues grew a mere 0.2% to 38.49 billion rupees and fell short of analysts' average estimate of 44.39 billion rupees.
Separately, Chief Executive Avik Roy said in a statement that Exide's lithium-ion cell manufacturing project in Bengaluru is expected to start commercial operations from fiscal year 2026.
Exide's shares closed 1.3% lower ahead of results.
