Exide Industries (EXID) beat revenue estimates with growth of 13% YoY (est.9%) to Rs17.3bn.Gross margins beat estimates by contracting only 27bps YoY (up 113bps QoQ) to 40% (est. 37.1%). But a steep rise in other expenses (up 224bps YoY) resulted in EBITDA margins falling 229bps to 13.3%(est. 14.2%)Despite a 30% YoY increase in depreciation, APAT rose 9% to Rs1.51 bn (est. Rs1.39 bn), on gains in other income and a 584bps YoY fall in the tax rate. We remain positive on the prospects of the battery segment with its favourable structural dynamics and strong growth outlook. However, we believe Exide's competitive challenges remain significant and its mediocre RoEs are likely to endure. We retain our 11x EV/EBIT multiple on the...