Sell Exide Industries - Disappoints yet again - Ambit

Exide's 3QFY13 results were an all-round disappointment. Revenues increased 17% YoY but contracted 4% QoQ, nearly 9% below our expectations. EBITDA margin at 11.3% was a disappointment yet again (down 199bps YoY and 112bps QoQ and a significant 275bps below our expectations).

Higher-than-expected raw material costs (higher by 182bps) as well as 'other expenses' (higher by 98bps) contributed to the margin disappointment. Although absolute EBITDA was below our expectations by 27%, net earnings at Rs1,041mn during the quarter was 29% lower than our expectations. Revenues, EBITDA margin and net earnings were lower than consensus expectations by 9%, 243bps and 26% respectively.

Source : Equity Bulls

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