BENGALURU, Nov 11 (Reuters) – Indian battery maker Exide Industries Ltd (EXID.NS)reported better-than-expected second-quarter earnings on Friday, driven by rising volumes and falling input costs.

There was also an increase in demand from the replacement and original equipment manufacturer (OEM) segments as demand for passenger cars surged and automakers reported strong sales.

Exide’s profit rose 5.13% to 2.46 billion Indian rupees ($30.43 million) in the June-September quarter, compared with 2.34 billion rupees a year ago, the company said in a stock exchange filing With.

Analysts on average had expected earnings of Rs.2.36 billion, according to Refinitiv IBES data.

The auto and industrial sectors were under pressure due to pandemic-related supply chain shortages and rising commodity prices following the Russian invasion of Ukraine.

However, sectors saw some relief as prices for commodities such as lead and crude oil cooled and supply chain constraints began to ease.

In addition, the industrial sector saw a strong rebound from a year earlier as business activity picked up, the company said.

“We expect the buoyant demand scenario to continue in most industries over the medium term and that the margin recovery will be supported to some extent by a recovery in input costs,” said Subir Chakraborty, Managing Director and Chief Executive Officer.

Operating income rose 13.04% to Rs.37.19 billion in the second quarter from Rs.32.90 billion a year earlier.

By the last close of trading, shares were up 4.63% year-to-date.

($1 = 80.8375 Indian Rupees)

Reporting by Akansha Victor in Bengaluru; Edited by Janane Venkatraman

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