"The company's gross margin was above estimate and expanded 310 basis point YoY (200bp QoQ) to 38.2 per cent. This was largely attributed to the benefit of the mix as well as inventory changes, partially offset by an increase in lead prices in Q3FY20 (as the impact of lead prices comes with a quarter lag). EBITDA (earnings before interest, taxes, depreciation and amortization) margins contracted 130bp YoY (-20bp QoQ) to 13.1 per cent as the benefit of lower raw material cost was overshadowed by negative operating leverage," Motilal Oswal Securities said in result update.
would see a lower benefit from lead prices than Amara Raja Batteries due to its captive smelter. On the other hand, Exide Industries
should see a better mix owing to higher aftermarket share," it said. The brokerage firm prefers Exide Industries as it offers superior risk-reward considering its market leadership, technology alliances, backward integration, and better mix.
At 01:27 pm, the stock was trading 7.6 per cent lower at Rs 159.90 on the BSE, as against 0.06 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 14 million shares changing hands on the NSE and BSE till the time of writing of this report.