2QFY2012 Result Update | Auto Ancillary

October 24, 2011

Exide Industries
Performance Highlights
Y/E March (` cr) Net sales EBITDA EBITDA margin (%) Adj. PAT
Source: Company, Angel Research

ACCUMULATE
CMP Target Price
% chg (yoy) 4.3 (63.2) (1,410)bp (69.2) Angel est. 1,201 208 17.3 140 % diff. (2.0) (56.6) (966)bp (63.4)

`115 `128
12 Months

2QFY12 1,176 90 7.7 51

2QFY11 1,127 245 21.8 166

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Auto Ancillary 9,771 0.53 176/112 314,665 1 16,939 5,098 EXID.BO EXID@IN

Exide Industries (Exide) reported disappointing results for 2QFY2012 due to a decline in volumes in the four-wheeler and industrial battery segments and significant contraction in OPM. Exides OPM fell on account of higher raw-material costs, led by poor inventory management, weak performance in the auto replacement battery segment and forex loss due to INR depreciation. We have downgraded our revenue and earnings estimates to factor in sluggish demand and weak margins going ahead. Consequently, our EPS estimates have been lowered by 26.8%/10.9% for FY2012E/13E. Management has indicated that the company is witnessing an uptick in sales in the automotive replacement and inverter battery segments and expects further demand revival from 4QFY2012. Post the recent correction in the stock price, we believe the stock is attractively valued. Hence, we recommend Accumulate on the stock. Below-par performance led by lower volumes and high RM cost: For 2QFY2012, Exide reported modest revenue growth of 4.3% yoy (down 5.5% qoq) to `1,176cr because of a 6% and 5% yoy dip in volumes in the four-wheeler and industrial battery segments, respectively. Four-wheeler battery volumes declined on lower offtake from the OEM and replacement segments, whereas industrial battery volumes declined as demand for batteries in the telecom and inverter verticals continued to witness subdued growth. OPM contracted sharply by 1,410bp yoy (1,018bp qoq) to a dismal 7.7%, impacted by a decline in operating leverage due to reduced utilization levels and higher raw-material costs due to the higher-cost lead inventory. Driven by overall weak operating performance, the companys bottom line declined significantly by 69.2% yoy (68.7% qoq) to `51cr. Outlook and valuation: At `115, Exide is attractively valued at 13.4x FY2013E EPS, adjusted for its stake in the insurance business. We recommend Accumulate on the stock with an SOTP target price of `128. Considering increased competitive intensity in the sector (leading to limited pricing power), we value Exides core operations in-line with its historical average of 15x its FY2013E EPS at `116/share instead of 16x earlier. We value its stake in ING Vysya Life Insurance at `12/share on FY2013E NBAP.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 46.0 25.7 17.5 10.8

Abs. (%) Sensex Exide Industries

3m (9.5) (23.3)

1yr (16.0)

3yr 94.7

(26.6) 130.6

Key financials
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA (%) Adj. EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 3,794 11.8 537 89.7 23.5 6.3 18.2 4.5 31.0 40.8 2.2 9.6

FY2011 4,554 20.0 633 17.8 19.4 7.4 14.7 3.6 25.5 30.8 1.8 9.5

FY2012E 4,953 8.8 471 (25.5) 13.0 5.5 20.7 3.3 16.3 18.6 1.6 12.5

FY2013E 5,688 14.9 655 38.9 15.5 7.7 14.9 2.8 20.1 23.5 1.4 8.8

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

Please refer to important disclosures at the end of this report

Exide Industries | 2QFY2012 Result Update

Exhibit 1: Quarterly financial performance

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 PATM Adj PAT Adj. PATM Equity capital (cr) EPS (`)
Source: Company, Angel Research

2QFY12 1,176 848 72.1 64 5.5 2 0.2 172 14.6 1,086 90 7.7 2 25 8 72 72 6.1 21 28.9 51 4.3 51 4.3 85.0 0.6

2QFY11 1,127 643 57.0 66 5.9 26 2.3 147 13.0 882 245 21.8 2 20 19 243 47 196 17.4 77 39.2 213 18.9 166 14.7 85.0 2.5

yoy chg (%) 4.3 31.9 (2.4) (92.6) 16.6 23.1 (63.2) (4.7) 22.5 (58.7) (70.4) (63.3) (73.0) (76.0) (69.2)

1QFY12 1,244 790 63.5 72 5.8 1 0.0 160 12.8 1,022 222 17.9 1 24 31 228 228 18.3 65 28.5 163 13.1 163 13.1 85.0

qoq chg (%) (5.5) 7.3 (10.5) 227.6 7.4 6.2 (59.4) 42.5 4.1 (74.4) (68.5) (68.5) (68.1) (68.7) (68.7)

1HFY12 2,421 1,638 67.7 136 5.6 2 0.1 331 13.7 2,108 313 12.9 3 48 39 300 300 12.4 86 28.6 214 8.9 214 8.9 85.0

1HFY11 2,279 1,319 57.9 134 5.9 36 1.6 282 12.4 1,771 509 22.3 3 40 25 491 47 444 19.5 160 36.0 378 16.6 331 14.5 85.0 4.5

% chg 6.2 24.2 1.9 (93.2) 17.5 19.1 (38.6) (9.6) 22.3 53.1 (38.9) (32.5) (46.4) (43.3) (35.3)

(76.0)

1.9

(68.7)

2.5

(43.3)

Revenue growth slows down to 4.3% yoy: Exide reported modest revenue growth of 4.3% yoy (down 5.5% qoq) to `1,176cr on account of a 6% and 5% yoy decline in volumes in the four-wheeler and industrial battery segments, respectively. Four-wheeler battery volumes declined on lower offtake from the OEM and replacement segments, whereas industrial battery volumes were down as demand for batteries in the telecom and inverter verticals continued to witness subdued growth. The two-wheeler battery segment, however, continued to grow at a strong pace and registered volume growth of 30% yoy during the quarter. During 2QFY2012, Exide slashed automotive and inverter battery prices by 10-15% in an attempt to arrest its falling market share to competitor Amara Raja Batteries, which negatively affected average realization. Post the price correction, Exides batteries are trading at a reasonable price premium of 8-10% as compared to Amara Rajas batteries. Management has no plans of taking further pricing action in the replacement segment, unless competition resorts to a similar move.

October 24, 2011

Exide Industries | 2QFY2012 Result Update

Exhibit 2: Automotive battery capacity expansion plans on track

(mn units)
Four-wheeler batteries Two-wheeler batteries Total automotive battery capacity
Source: Company, Angel Research

Apr-11
9.7 16.0 25.7

Jun-11 Dec-11
10.1 18.6 28.7 12.0 21.6 33.6

Exhibit 3: Revenue growth slows down to 4.3% yoy

(` cr) 1,400 1,200 1,000 800 600 400 200 0 5.6 15.9 18.6 15.0 8.0 21.2 28.8 27.5 Net sales (LHS) yoy growth (RHS) (%) 35 30 25 20 15 10 4.3 5 0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Source: Company, Angel Research

Operating margin contracts sharply to 7.7%: During 2QFY2012, Exide posted a significant 1,410bp yoy (1,018bp qoq) decline in its operating margin to 7.7%. This sharp contraction was due to a 1,297bp yoy (870bp qoq) increase in raw-material expenses during the quarter, which accounted for ~72.3% (63.6% in 1QFY2012) of sales. Raw-material cost increased largely due to poor inventory management, leading to consumption of higher-cost inventory during the quarter and forex loss of `15cr due to depreciation of INR vs. USD. Further, poor performance in the highly profitable auto replacement segment and the 154bp yoy increase in other expenditure on account of higher promotional expenses negatively impacted the companys operating margin.

Exhibit 4: Average lead prices up 20.2% yoy

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

Exhibit 5: EBITDA margin trend

(%) 80 70 60 50 40 30 20 10 0 26.0 24.0 21.1 22.8 21.8 15.2 18.7 17.9 54.9 56.7 58.9 59.6 59.3 65.1 62.8 63.6 72.3 EBITDA margin Raw material cost/sales

2QFY12
7.7

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Source: Company, Bloomberg, Angel Research

Source: Company, Angel Research

October 24, 2011

2QFY12

Dec-02

Mar-02

Dec-06

Apr-09

Nov-10

Oct-03

Feb-06

Sep-07

Feb-10

May-05

Sep-11

Jul-04

Jul-08

Exide Industries | 2QFY2012 Result Update

Weak operating performance hits bottom line: Exide posted a substantial 76% yoy decline (68.7% qoq) in net profit to `51cr, significantly lower than our as well as consensus estimates. The sharp decline in profitability can be attributed to disappointing performance at the operating level. Further lower-than-expected other income accentuated the bottom-line decline. As a result, net profit margin nosedived by 1,040bp yoy (880bp qoq) to 4.3%. Other income during the quarter was lower on account of lower dividend from smelter subsidiaries.

Exhibit 6: Weak operating performance hits the bottom line

(`cr) 180 160 140 120 100 80 60 40 20 0 15.7 14.3 Net profit (LHS) 13.1 14.4 Net profit margin (RHS) 14.7 13.1 (%) 18 16 14 12 10 8 6 4 2 0

11.8

13.1

4.3

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Source: Company, Angel Research

October 24, 2011

2QFY12

Exide Industries | 2QFY2012 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 robust demand-pull on account of higher auto and industrial production and increased consumer spending. As a result, we expect the auto and industrial battery segments to continue to grow, generating revenue CAGRs of ~13% and ~10%, respectively, over FY2011-13E. Hence, we forecast Exide to register strong revenue CAGRs of ~14% and ~10% in the auto and industrial battery segments, respectively. Market leader with a wider reach and pricing power: Exide 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. Exide 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, Exide 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 Exide 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: Exide acquired Tandon Metals (FY2008) and Leadage Alloys (51% in FY2009 and 49% in 2QFY2011) to recycle used 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. Exide has benefitted from its captive sourcing strategy, as lead sourcing from captive smelters is 10-15% cheaper compared to market rates. Going forward, Exide 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: Exide 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. The company would increase its two-wheeler and four-wheeler battery capacity by ~100% and ~43%, respectively, by the end of FY2012E. As a result of increased capacity, we believe Exide is well placed to meet the rising auto battery demand. We estimate the overall utilization level to remain at 75-80% in FY2013E. Further, we expect Exide to post volume CAGRs of ~12% and ~7% in the auto and industrial battery segments, respectively, over FY2011-13E.

October 24, 2011

Exide Industries | 2QFY2012 Result Update

Outlook and valuation

We maintain our long-term positive outlook on the battery industry. However, we have downgraded our revenue and earnings estimates to factor in lower-than-expected 2QFY2012 results, sluggish demand and weak margins going ahead. As a result, our EPS estimates have been lowered by 26.8%/10.9% for FY2012E/13E. We expect Exide to post a ~12% revenue CAGR over FY2011-13E, led by the expected recovery in automotive battery demand from 1QFY2013. At `115, Exide is attractively valued at 13.4x FY2013E EPS, adjusted for its stake in the insurance business. We recommend Accumulate on the stock with an SOTP target price of `128. Considering increased competitive intensity in the sector (leading to limited pricing power), we value Exides core operations in-line with its historical average of 15x its FY2013E EPS at `116/share instead of 16x earlier. We value its stake in ING Vysya Life Insurance at `12/share on FY2013E NBAP.

Exhibit 7: Change in estimates

Y/E March Net sales (` cr) OPM (%) EPS (`) Earlier estimates FY2012E 5,154 17.6 7.6 FY2013E 5,937 17.5 8.6 Revised estimates FY2012E 4,953 13.0 5.5 FY2013E 5,688 15.5 7.7 % chg FY2012E (3.9) (461)bp (26.8) FY2013E (4.2) (200)bp (10.9)

Source: Company, Angel Research

Exhibit 8: One-year forward P/E band

(`) 200 180 160 140 120 100 80 60 40 20 0 Share price (`) 6x 12x 18x 24x

Exhibit 9: One-year forward P/E chart

(x) 30 25 20 15 10 5 0 One-yr forward P/E Long term average P/E Five-yr average P/E

Jul-03

Jul-06

Jan-02

Jan-05

Jan-08

Jul-09

Apr-01

Apr-04

Apr-07

Oct-02

Oct-05

Oct-08

Apr-10

Jan-11

Jan-02

Jan-05

Jan-08

Apr-01

Apr-04

Apr-07

Oct-02

Oct-05

Oct-08

Apr-10

Jan-11

Source: Company, Bloomberg, Angel Research

Oct-11

Source: Company, Bloomberg, Angel Research

October 24, 2011

Oct-11

Jul-03

Jul-06

Jul-09

Exide Industries | 2QFY2012 Result Update

Exhibit 10: Key assumptions

FY08 Volume assumptions Four-wheeler battery (mn units) yoy change (%) Two-wheeler battery (mn units) yoy change (%) Total auto battery (mn units) yoy change (%) Industrial battery volumes (mnAH) yoy change (%) Revenue mix (` cr) Automotive battery revenue yoy change (%) Industrial battery revenue yoy change (%) Others
Source: Company, Angel Research

FY09 6.6 10.0 8.3 15.3 14.9 12.9

FY10 7.5 12.9 8.7 5.4 16.2 8.7 1,565 18.9 2,828 9.1 1,659 5.5 55

FY11 8.2 10.4 10.8 23.2 19.0 17.3 1,760 12.5 3,501 23.8 1,940 17.0 117

FY12E 8.1 (2.0) 13.0 21.0 21.1 11.0 1,795 2.0 3,927 12.2 2,038 5.1 75

FY13E 9.0 12.0 14.7 12.5 23.7 12.3 1,975 10.0 4,542 15.7 2,309 13.3 85

6.0 7.2 13.2

1,129 1,316 16.6 2,561 2,593 1.2 1,019 1,572 54.3 26 68

Exhibit 11: Angel vs. consensus forecast

Angel estimates FY12E Net sales (` cr) EPS (`) 4,953 5.5 FY13E 5,688 7.7 Consensus FY12E 5,172 7.4 FY13E 6,073 9.3 Variation (%) FY12E (4.2) (25.1) FY13E (6.3) (17.0)

Source: Bloomberg, Angel Research

Exhibit 12: Auto Ancillary Recommendation summary

Company Amara Raja Batteries Automotive Axle^ Bharat Forge* Bosch India
#

Reco. Buy Buy Accumulate Accumulate Accumulate Accumulate Buy Buy

#

CMP (`) 208 382 284 6,970 115 1,308 179 27

Tgt. price (`) 242 450 301 7,501 128 1,396 208 33

Upside (%) 16.7 17.8 5.7 7.6 10.9 6.8 15.7 20.3

P/E (x) FY12E FY13E 10.7 9.5 16.6 21.2 20.7 12.6 18.9 5.4 9.4 8.5 14.2 18.6 14.9 11.4 15.6 5.0

EV/EBITDA (x) FY12E 6.1 5.5 8.4 12.6 12.5 7.0 8.5 3.8 FY13E 5.0 4.8 6.8 10.7 8.8 5.8 7.3 3.2

RoE (%) FY12E 22.9 27.6 18.3 20.1 16.3 26.4 21.8 12.4 FY13E 21.1 26.2 18.1 19.0 20.1 23.1 23.1 12.6

FY11-13E EPS CAGR (%) 12.9 24.2 26.9 17.1 1.7 25.1 7.9 6.8

Exide Industries FAG Bearings Subros Motherson Sumi*

Source: Company, Angel Research; Note: * Consolidated results; # December year end; ^ September year end

October 24, 2011

Exide Industries | 2QFY2012 Result Update

Profit and loss statement

Y/E March (` cr) Gross sales Less: Excise Duty Less: Sales Tax, VAT, Octroi Net Sales Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation & Amortization EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Items Tax (% of PBT) PAT (reported) Adj. PAT % chg (% of Net Sales) Basic EPS (`) Adj. EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 3,606 448 312 2,846 2,846 52.2 2,374 1,875 163 146 191 472 52.5 16.6 64 408 59.8 14.3 45 7 2.0 370 55.0 2 124 33.6 246 244 56.5 8.6 3.1 3.1 46.7 4,233 464 376 3,393 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 1 151 34.7 284 283 16.0 8.3 3.6 3.5 16.0 4,542 328 419 3,794 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 (0) 273 33.7 537 537 89.7 14.2 6.3 6.3 78.5 5,558 493 512 4,554 4,554 20.0 3,672 2,808 283 278 304 881 (1.2) 19.4 83 798 (1.7) 17.5 9 151 16.7 940 16.0 33 274 30.2 666 633 17.8 13.9 7.8 7.4 17.8 6,040 535 553 4,953 4,953 8.8 4,311 3,336 324 311 340 642 (27.2) 13.0 90 551 (30.9) 11.1 4 113 17.1 659 (29.9) 188 28.5 471 471 (25.5) 9.5 5.5 5.5 (25.5) 6,937 614 635 5,688 5,688 14.9 4,804 3,700 368 358 378 884 37.8 15.5 101 783 42.1 13.8 4 137 14.9 916 38.9 261 28.5 655 655 38.9 11.5 7.7 7.7 38.9

October 24, 2011

Exide Industries | 2QFY2012 Result Update

Balance sheet
Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves & Surplus Shareholders Funds Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Total Assets 1,097 542 555 47 518 876 2 45 830 572 304 1,424 1,257 589 668 17 668 742 34 38 669 487 255 1,609 1,336 660 677 38 1,335 912 3 48 861 593 319 2,369 1,561 725 836 66 1,378 1,329 15 88 1,225 796 532 2,812 1,774 816 958 53 1,612 1,401 112 99 1,190 924 477 3,101 1,972 916 1,055 59 1,956 1,587 38 114 1,435 1,101 486 3,557 80 946 1,026 350 48 1,424 80 1,170 1,250 317 41 1,609 85 2,135 2,220 90 59 2,369 85 2,657 2,742 2 68 2,812 85 2,946 3,031 2 68 3,101 85 3,402 3,487 2 68 3,557 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 24, 2011

Exide Industries | 2QFY2012 Result Update

Cash flow statement

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in loans and adv. 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 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 368 64 124 239 124 194 (167) (140) (13) 14 (307) 149 25 31 (91) 113 1 2 434 68 (55) (202) 151 498 (130) (150) 6 (41) (315) (33) 37 (156) (151) 32 2 34 811 81 62 159 273 521 (100) (667) 3 (11) (775) 530 (227) 56 (135) 224 (31) 34 3 907 83 161 453 274 424 (253) (43) (26) 31 (291) (0) (88) 95 (128) (121) 12 3 15 659 90 (163) (215) 188 614 (200) (234) (21) (455) 140 (202) (62) 97 15 112 916 101 68 275 261 548 (204) (344) (7) (555) 149 (216) (67) (74) 112 38

October 24, 2011

10

Exide Industries | 2QFY2012 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.) (0.2) (0.4) 9.1 (0.3) (0.7) 9.3 (0.6) (1.4) 60.1 (0.5) (1.6) 91.9 (0.6) (2.7) 128 (0.6) (2.3) 182 2.8 62 26 51 30 2.9 54 26 46 28 2.9 50 23 42 26 3.1 59 25 46 33 3.0 63 25 50 33 3.0 61 25 48 26 33.1 47.0 28.8 31.7 54.9 24.9 40.8 81.1 31.0 30.8 57.3 25.5 18.6 40.8 16.3 23.5 51.0 20.1 14.3 0.7 3.8 36.4 8.8 36.4 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 3.8 46.6 13.2 46.6 11.1 0.7 3.6 28.7 143.0 28.7 13.8 0.7 3.9 38.8 143.0 38.8 3.1 3.1 3.9 0.4 12.4 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 5.5 5.5 6.6 1.5 35.3 7.7 7.7 8.9 2.0 40.7 37.3 29.6 9.3 0.3 3.4 20.3 6.7 32.3 26.1 7.6 0.5 2.8 17.1 5.8 18.2 15.8 4.5 0.8 2.2 9.6 3.6 14.7 13.6 3.6 1.3 1.8 9.5 3.0 20.7 17.4 3.3 1.3 1.6 12.5 2.6 14.9 12.9 2.8 1.7 1.4 8.8 2.2 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 24, 2011

11

Exide Industries | 2QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

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 24, 2011

12