Exide Navigates FY25 Cashflow Dip, Prioritizes Internal Funding for EESL Growth

Exide Industries has reiterated that it will fund the capital expenditure of its fully owned subsidiary, Exide Energy Solutions Limited (EESL), through internal accruals-even as the company stares at a decline in FY25 cashflows and margins. Exide has just invested ₹149.99 crore in EESL via a rights issue, increasing its investment to ₹3,302 crore, which will be used for setting up a greenfield lithium-ion battery plant at Bengaluru for electric vehicle and stationary uses. Despite a challenging year with an 11% decline in Q4 standalone profit and 9% decline in full-year consolidated net profit due to high raw material costs, Exide enjoys a comfortable liquidity position with no debt and robust operational cashflows. The company remains focused on the timely completion of the lithium-ion project with the target for commercial operations in FY26 and continues to be committed to cost-reduction efforts and manufacturing technology upgrades.

 

Source: Exide Industries, Economic Times, CNBC TV18