Karachi: Exide Pakistan Ltd. showcased significant financial growth in its MY24 performance during an analyst briefing today, with a notable increase in revenues and gross margins. The company reported a topline of PKR 26 billion, marking a 10% increase from PKR 23 billion in MY23, and a jump in gross margins from 14% to 19%.

According to AKD Securities Limited, the increase in earnings is substantial, with Exide posting PKR 1.2 billion in MY24, up from PKR 755 million the previous year. This growth is reflected in the earnings per share, which rose from PKR 97.12 to PKR 161.49. However, the company anticipates that future margins could be affected by competitive pressures, though it has decided against engaging in "unhealthy competition" with informal manufacturers.

The management highlighted that sales linked to the auto sector account for less than 5% of total volumes but expect a rise in demand in the solar segment. Exide is preparing to meet this demand, especially with the anticipated use of Lithium-Ion batteries in solar systems. Despite the potential for local production, Exide currently imports Lithium-Ion batteries as complete built units from China and has no immediate plans to manufacture these domestically due to the high capital expenditure required—estimated at around US$250 million—and the complex manufacturing processes involved.