You are on page 1of 12

2QFY2013 Result Update | Auto Ancillary

October 19, 2012

Exide Industries
Performance Highlights
Y/E March (` cr) Net Sales EBITDA EBITDA Margin (%) Adj. PAT 2QFY13 1,521 188 12.4 120 2QFY12 1,173 90 7.7 51 % chg (yoy) 29.7 109.1 469bp 135.2 1QFY13 1,554 233 15.0 152 % chg (qoq) (2.1) (19.1) (261)bp (20.9)

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Auto Ancillary 12,610 (76) 0.5 166/99 187,544 1 18,682 5,684 EXID.BO EXID@IN

`148 -

Source: Company, Angel Research

For 2QFY2013, Exide Industries (EXID) reported an extremely weak set of results on the bottom-line front (down 20.9% qoq) which was significantly below our estimates led by a sharp deterioration in the operating margins. The EBITDA margins were impacted on account of increase in cost pressures led by rising lead prices, employee expenses, power cost and advertising expenses. We have raised our top-line estimates for FY2013E/14E to factor in the strong volume momentum in the automotive replacement segment. Nonetheless, our earnings estimates are revised downwards to account for the cost pressures and increasing competitive activity in the segment which has led to reduced pricing power. We maintain our Neutral rating on the stock. Margin pressures impact 2QFY2013 performance: For 2QFY2013, EXIDs top-line surprised positively, registering a robust growth of 29.7% yoy (down 2.1% qoq) to `1,521cr, driven by a strong growth in the automotive replacement and inverter battery segments. The EBITDA margin contracted 261bp sequentially to 12.4% due to increase in raw-material expenses (led by INR depreciation) and higher other expenditure (due to higher power and fuel expenses). As a result, the net profit declined 20.9% qoq to `120cr against our estimate of `134cr. The management indicated that the replacement to original equipment manufacturer (OEM) mix improved on a sequential basis as growth in the OEM segment declined during the quarter. Outlook and valuation: We expect the company to report an improvement in its operating performance in 2HFY2013 led by a pick-up in demand from the OEM segment and sustained growth in the automotive replacement segment. Further, EXID has hiked battery prices by 5% across the replacement segment which will benefit the operating margins. Nonetheless, current valuations of 16.6x FY2014E earnings, capture most of the positives in our view. We therefore maintain our Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 46.0 26.1 18.0 9.9

Abs. (%) Sensex Exide Industries

3m 8.1 13.7

1yr 9.4 12.9

3yr 7.8 38.8

Key financials (Standalone)


Y/E March (` cr) Net Sales % chg Net Profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 4,547 19.9 633 17.8 19.4 7.4 18.9 4.6 25.5 30.5 2.5 12.7

FY2012 5,107 12.3 461 (27.1) 13.4 5.4 27.3 4.2 15.9 19.3 2.2 16.0

FY2013E 6,229 22.0 610 32.1 14.8 7.2 20.7 3.6 18.5 23.6 1.7 11.6

FY2014E 7,200 15.6 761 24.8 15.8 9.0 16.6 3.1 19.9 25.7 1.4 9.0

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Exide Industries | 2QFY2013 Result Update

Exhibit 1: Quarterly financial performance (Standalone)


Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Purchases of TG (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT Adj PAT Adj. PATM Equity capital (cr) Reported EPS (`)
Source: Company, Angel Research

2QFY13 1,521 1,000 65.7 90 5.9 7 0.5 236 15.5 1,333 188 12.4 1 28 13 172 172 11.3 51 30.0 120 120 7.9 85.0 1.4

2QFY12 1,173 832 71.0 64 5.5 2 0.2 184 15.7 1,083 90 7.7 1 25 8 72 72 6.1 21 28.8 51 51 4.4 85.0 0.6

% chg (yoy) 29.7 20.1 39.3 292.1 28.4 23.1 109.1 (32.4) 14.2 58.9 139.0 139.0 148.3 135.2 135.2 0.0 135.2

1QFY13 1,554 1,010 65.0 84 5.4 1 0.1 225 14.5 1,321 233 15.0 1 28 15 219 219 14.1 67 30.4 152 152 9.8 85.0 1.8

% chg (qoq) (2.1) (1.0) 6.7 428.4 4.9 0.9 (19.1) (27.9) 2.0 (14.9) (21.5) (21.5) (22.7) (20.9) (20.9)

1HFY13 3,075 2,010 65.4 174 5.7 9 0.3 462 15.0 2,654 421 13.7 2 56 27 390 390 12.7 118 30.2 272 272 8.9 85.0

1HFY12 2,421 1,626 67.2 136 5.6 2 0.1 344 14.2 2,108 313 12.9 3 48 39 300 300 12.4 86 28.6 214 214 8.9 85.0 2.5

% chg (yoy) 27.0 23.6 27.4 257.3 34.3 25.9 34.7 (18.5) 15.3 (29.5) 30.0 30.0 37.7 27.0 27.0 0.0 27.0

(20.9)

3.2

Exhibit 2: 2QFY2013 Actual vs Angel estimates


Y/E March (` cr) Net Sales EBITDA EBITDA margin (%) Adj. PAT
Source: Company, Angel Research

Actual 1,521 188 12.4 120

Estimates 1,370 210 15.3 134

Variation (%) 11.1 (10.2) (293)bp (10.4)

Top-line growth surprises positively: For 2QFY2013, the top-line registered a better-than-expected growth of 29.7% yoy (down 2.1% qoq) to `1,521cr driven by a strong growth in the automotive replacement and industrial battery segments. The growth in the inverter battery segment was mainly driven by the power shortage situation in the country. However, demand from the automotive OEMs remained subdued due to slowdown in the industry. The management indicated that the replacement to OEM mix improved on a sequential basis as growth in the OEM segment declined during the quarter.

October 19, 2012

Exide Industries | 2QFY2013 Result Update

Exhibit 3: Strong top-line growth of 29.7% yoy


(` cr) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
1,127 1,050 1,248 1,248

Net sales (LHS)

yoy growth (RHS) 29.7 24.5

(%) 35.0 30.0 25.0 20.0 15.0

18.6 15.0

21.2

19.0

16.0

8.3 4.0
1,173 1,250 1,448 1,554 1,521

10.0 5.0 0.0

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Source: Company, Angel Research

Operating margin surprises negatively: During 2QFY2013, EXIDs EBITDA margin contracted 261bp sequentially to 12.4% against our expectation of 15.3% on account of increase in raw-material and other expenditure. While raw-material expenses as a percentage of sales jumped 110bp led by INR depreciation; other expenditure as a percentage of sales increased 100bp due to higher power and fuel expenses and increasing advertising spends. Employee cost as a percentage of sales also grew by 50bp qoq during the quarter. The company has increased the prices by 5% across the replacement battery segment from October 18, 2012 to offset the rise in input costs. We believe that the price hikes will enable the company to maintain its margins going ahead.

Exhibit 4: Average lead price trend


(US $/tonne) 5,000 4,000 3,000 2,000 1,000 0 Lead inventory (RHS) Lead prices (LHS) (tonne) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

Exhibit 5: Sharp fall in EBITDA margins


(%) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 21.8 15.2 18.7 17.8 13.2 14.7 15.0 12.4 59.3 65.1 71.2 62.8 63.9 67.4 67.3 65.2 66.4 EBITDA margin Raw material cost/sales

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Mar-07

Dec-09

Apr-06

Nov-10

Feb-08

Oct-11

Source: Company, Angel Research

Sep-12

Source: Company, Angel Research

Net profit sharply lower-than-expected: The net profit registered a sharp decline of 20.9% to `120cr against our estimates of `134cr led by a lower-than-expected operating performance. However, on a low base of last year, the operating margins improved 469bp leading to a 135.2% growth in net profit.

October 19, 2012

2QFY13

7.7

Jan-09

2QFY13

Exide Industries | 2QFY2013 Result Update

Exhibit 6: Lower-than-expected operating performance hurts profitability


(`cr) 180 160 140 120 100 80 60 40 20 0
166 124 164 163 51 104 143 152 120

Net profit (LHS) 14.7 11.8 13.1 13.1

Net profit margin (RHS)

(%) 16.0 14.0 12.0 7.9 10.0 8.0 6.0 4.0 2.0 0.0

9.8 8.3 4.4

9.8

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Source: Company, Angel Research

October 19, 2012

2QFY13

Exide Industries | 2QFY2013 Result Update

Investment arguments
Demand scenario for auto and industrial batteries to remain positive in the long run: The auto and industrial battery segments have been witnessing strong growth post the economic downturn, driven by a robust demand-pull on account of higher auto and industrial production and increased consumer spending. As a result, we expect EXID to register strong revenue CAGRs of ~20% and ~17% in the auto and industrial battery segments, respectively. Market leader with a wider reach and pricing power: EXID is a dominant player in the auto battery (OEM and replacement) and industrial battery segments with a market share of 60-65% and 40-45%, respectively. EXID has leveraged upon its brand equity, better quality proposition and wider reach to consolidate its position in the market, which gives the company a superior pricing power compared to peers. Over the years, EXID has been able to improve its realization across the auto and industrial battery segments, which has more than offset the movements in input prices. We expect EXID to continue to leverage upon its market leadership position and pricing power, which would enhance the companys ability to pass on cost increases in the future as well. Captive sourcing reduces impact of lead price volatility: EXID acquired Tandon Metals (FY2008) and Leadage Alloys (51% in FY2009 and 49% in 2QFY2011) to recycle lead and lessen the vulnerability of rising lead prices. This reduced the company's dependence on imported lead in FY2011 to 28-30% (~32% in FY2010). Total lead supplied by the captive smelter increased to ~52% in FY2011 from ~50% in FY2010. EXID has benefitted from its captive sourcing strategy, as lead sourcing from captive smelters is 10-12% cheaper compared to market rates. Going forward, EXID plans to increase sourcing from its smelters to ~70% by FY2013E. Our sensitivity analysis suggests that for every 10% increase in sourcing from captive smelters, the companys EBITDA margin expands by ~50bp (assuming stable lead prices). Capacity expansion to increase volume growth: EXID has been operating at ~90% utilization levels over the past five years. Hence, the company is in the process of increasing its battery capacity to cater to the growing demand. As a result of increased capacity, we believe EXID is well placed to meet the rising auto battery demand. We estimate the companys overall utilization level to remain at 75-80% in FY2014E. Further, we expect EXID to post volume CAGRs of ~17% and ~14% in the auto and industrial battery segments, respectively, over FY2012-14E.

October 19, 2012

Exide Industries | 2QFY2013 Result Update

Outlook and valuation


We have raised upwards our top-line estimates for FY2013E/14E to factor in the strong volume momentum in the automotive replacement segment. Nonetheless, our earnings estimates are revised downwards to account for the cost pressures and increasing competitive activity in the segment which has led to reduced pricing power.

Exhibit 7: Change in estimates


Y/E March Net Sales (` cr) OPM (%) EPS (`)
Source: Company, Angel Research

Earlier Estimates 5,913 16.0 7.4 6,787 17.0 9.2

Revised Estimates 6,229 14.8 7.2 7,200 15.8 9.0

% chg 5.3 (115)bp (3.0) 6.1 (124)bp (2.5)

FY2013E FY2014E FY2013E FY2014E FY2013E FY2014E

We expect the company to report an improvement in its operating performance in 2HFY2013 led by pick-up in demand from the OEM segment and sustained growth in the automotive replacement segment. Further, EXID has hiked battery prices by 5% across the replacement segment which will benefit the operating margins. Nevertheless, the current valuations of 16.6x FY2014E earnings capture most of the positives in our view. We therefore maintain our Neutral rating on the stock.

Exhibit 8: Key assumptions


FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E Automotive battery volumes (mn units) Four-wheeler yoy change (%) Two-wheeler yoy change (%) Total Automotive volumes yoy change (%) Industrial battery volumes (mnAH) yoy change (%)
Source: Company, Angel Research

6.6 10.0 8.3 15.3 14.9 12.9 1,316 16.6

7.5 12.9 8.7 5.4 16.2 8.7 1,565 18.9

8.2 10.4 10.8 23.2 19.0 17.3 1,760 12.5

7.8 (4.6) 13.9 28.6 21.7 14.2 1,830 4.0

9.0 15.0 16.9 22.0 25.9 19.5 2,123 16.0

10.1 12.0 19.4 15.0 29.5 14.0 2,378 12.0

Exhibit 9: Angel vs consensus forecast


Angel estimates FY13E Net sales (` cr) EPS (`) 6,229 7.2 FY14E 7,200 9.0 Consensus FY13E 6,078 7.5 FY14E 7,059 9.2 Variation (%) FY13E 2.5 (4.4) FY14E 2.0 (2.7)

Source: Company, Angel Research

October 19, 2012

Exide Industries | 2QFY2013 Result Update

Exhibit 10: One-year forward P/E band


(` ) 250 200 150 100 50 0
Share price (`) 6x 12x 18x 24x

Exhibit 11: One-year forward P/E chart


(x) 30.0 25.0 20.0 15.0 10.0 5.0 0.0 One-yr forward P/E Long term average P/E Five-yr average P/E

Dec-07

Dec-08

Dec-07

Mar-02

Mar-03

Mar-02

Nov-09

Nov-10

Mar-03

Dec-08

Jan-05

Jan-06

Jan-07

Jan-05

Jan-06

Apr-01

Apr-01

Jan-07

Nov-09

Nov-10

Oct-11

Oct-12

Oct-11

Feb-04

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 12: Auto Ancillary Recommendation summary


Company Amara Raja Batteries Automotive Axle Bharat Forge* Bosch India# Exide Industries FAG Bearings# Motherson Sumi* Subros
^

Reco. Neutral Accumulate Buy Neutral Neutral Neutral Accumulate Buy

CMP (`) 238 396 304 8,851 148 1,822 150 29

Tgt. price (`) 430 351 159 34


#

Upside (%) 8.6 15.4 5.5 17.1

P/E (x) FY13E FY14E 15.0 10.7 15.0 25.4 20.7 16.4 18.7 6.5
^

EV/EBITDA (x) FY13E 8.8 5.6 7.4 16.2 11.6 10.0 7.7 4.4 FY14E 7.3 4.4 6.2 12.6 9.0 7.9 6.3 4.0 12.7 9.2 12.1 20.3 16.6 13.7 14.2 5.1

Feb-04

RoE (%) FY13E 28.9 21.2 19.9 19.4 18.5 22.7 22.9 9.8 FY14E 26.9 21.2 20.9 20.1 19.9 22.1 24.7 11.8

FY12-14E EPS CAGR (%) 22.2 6.2 19.3 13.3 28.4 12.0 56.2 6.4

Source: Company, Angel Research; Note: * Consolidated results;

December year end;

September year end

Company background
Exide Industries (EXID) is a leading automobile and industrial battery manufacturer in India. The company commands a ~70% and ~65% market share in the OEM and organized replacement battery segment respectively and a 40-45% share in the industrial battery segment. EXID has technological tie-ups with majors such as Shin Kobe and Furukawa Battery. The automotive and industrial battery segments accounted for ~65% and ~35% of the company's total revenue in FY2012, respectively. EXID also has a 50% stake in ING Vysya Insurance Ltd, a JV with ING Group, Netherlands.

October 19, 2012

Oct-12

Exide Industries | 2QFY2013 Result Update

Profit and loss statement (Standalone)


Y/E March (` cr) Total operating income % chg Total expenditure Net raw material costs Other mfg costs Employee expenses Other EBITDA % chg (% of total op. income) Depreciation & amortization EBIT % chg (% of total op. income) Interest and other charges Other income (% of PBT) Recurring PBT % chg PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of total op. income) Basic EPS (`) Adj. EPS (`) % chg FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 3,393 19.2 2,845 2,248 188 165 243 548 16.1 16.1 68 480 17.8 14.1 52 7 1.6 435 17.6 434 151 34.7 284 283 16.0 8.3 3.6 3.5 16.0 3,794 11.8 2,902 2,158 231 230 283 892 62.8 23.5 81 811 69.0 21.4 14 12 1.5 810 86.2 811 273 33.7 537 537 89.7 14.2 6.3 6.3 78.5 4,547 19.9 3,666 2,823 283 283 277 881 (1.2) 19.4 83 798 (1.7) 17.5 9 151 16.7 940 16.0 907 274 30.2 666 633 17.8 13.9 7.8 7.4 17.8 5,107 12.3 4,421 3,433 325 286 376 686 (22.1) 13.4 101 585 (26.6) 11.5 8 67 10.4 645 (31.4) 645 184 28.5 461 461 (27.1) 9.0 5.4 5.4 (27.1) 6,229 22.0 5,307 4,061 417 355 473 922 34.4 14.8 114 808 38.0 13.0 8 71 8.1 871 35.0 871 261 30.0 610 610 32.1 9.8 7.2 7.2 32.1 7,200 15.6 6,066 4,644 475 410 536 1,135 23.1 15.8 118 1,017 25.9 14.1 8 78 7.1 1,087 24.8 1,087 326 30.0 761 761 24.8 10.6 9.0 9.0 24.8

October 19, 2012

Exide Industries | 2QFY2013 Result Update

Balance sheet statement (Standalone)


Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders Funds Total loans Deferred tax liability Other long term liabilities Long term provisions Total Liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Investments Long term loans and adv. Other noncurrent assets Current assets Cash Loans & advances Other Current liabilities Net current assets Total Assets 742 34 38 669 487 255 1,609 912 3 48 861 593 319 2,369 1,257 589 668 17 668 1,336 660 677 38 1,335 1,561 725 836 47 1,378 31 0 1,314 15 63 1,236 747 567 2,860 1,777 810 967 27 1,555 18 1 1,528 58 96 1,375 896 632 3,198 2,012 924 1,088 40 1,778 18 1 1,887 154 125 1,609 1,154 733 3,659 2,219 1,042 1,177 44 2,076 18 1 2,246 267 144 1,834 1,291 955 4,270 1,609 2,369 80 1,170 1,250 317 41 85 2,135 2,220 90 59 85 2,657 2,742 68 3 46 2,860 85 2,972 3,057 83 4 54 3,198 85 3,433 3,518 83 4 54 3,659 85 4,045 4,130 83 4 54 4,270 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

Source: Company, Angel Research

October 19, 2012

Exide Industries | 2QFY2013 Result Update

Cash flow statement (Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in working capital Others Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in fixed assets (Inc.)/Dec. in investments Other income Cash Flow from Investing Issue of equity Inc./(Dec.) in loans Dividend paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in cash Opening Cash balances Closing Cash balances FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 435 68 61 98 (7) (151) 505 (130) (150) 7 (273) (33) 37 (204) (199) 32 2 34 810 81 (59) (23) (12) (273) 524 (100) (667) 12 (755) 530 (227) 56 (159) 200 (31) 34 3 940 83 (238) 37 (151) (274) 398 (234) (43) 151 (126) (90) 95 (265) (260) 12 3 15 645 101 (29) 44 (67) (184) 510 (195) (177) 67 (304) 140 (281) (140) 43 15 58 (149) 97 58 154 (149) 113 154 267 871 114 (5) (71) (261) 648 (250) (224) 71 (403) 149 1,087 118 (109) (78) (326) 692 (210) (297) 78 (430) 149

October 19, 2012

10

Exide Industries | 2QFY2013 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) (0.3) (0.7) 9.3 (0.6) (1.4) 60.1 (0.5) (1.6) 91.8 (0.5) (2.3) 78 (0.5) (2.1) 107 (0.6) (2.1) 135 2.9 54 26 46 28 2.9 50 23 42 26 3.1 59 25 46 35 3.1 65 27 52 40 3.3 62 27 51 34 3.4 62 26 52 32 31.7 54.9 25.1 40.8 81.1 31.0 30.5 55.4 25.5 19.3 37.5 15.9 23.6 47.5 18.5 25.7 53.5 19.9 14.1 0.7 3.9 36.0 10.1 36.0 21.4 0.7 4.0 57.4 4.4 57.4 17.5 0.7 3.7 45.6 45.6 11.5 0.7 3.4 27.9 27.9 13.0 0.7 3.8 34.7 14.1 0.7 4.0 39.5 3.6 3.5 4.4 0.6 15.2 6.3 6.3 7.3 1.0 25.8 7.8 7.4 8.4 1.5 31.9 5.4 5.4 6.6 1.5 35.7 7.2 7.2 8.5 1.5 41.1 9.0 9.0 10.3 1.5 48.3 41.7 33.7 9.7 0.4 3.6 22.3 7.6 23.5 20.4 5.8 0.7 3.0 12.7 4.8 18.9 17.6 4.6 1.0 2.5 12.7 3.9 27.3 22.4 4.2 1.0 2.2 16.0 3.4 20.7 17.4 3.6 1.0 1.7 11.6 2.9 16.6 14.4 3.1 1.0 1.4 9.0 2.4 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

13.5 17,967.8

October 19, 2012

11

Exide Industries | 2QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Exide Industries No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

October 19, 2012

12