Exide Industries (Exide) delivered strong Q1FY17 performance. Its Revenue/EBIDTA/PAT grew 11%/19%/26% YoY and 13.9%/18.8%/10.4% QoQ to Rs 20.1bn/3.2bn/1.96bn (our estimate of Rs 20.7bn/3.5bn/2.17bn) respectively. It was marginally lower than our estimates due to miss on revenues front. Company's EBIDTA margins rose 100 bps YoY and 64 bps QoQ to 15.7% (our est of 17%), due to lower RM cost amid low lead prices. OEM margins are still under pressure and have negative impact on overall profitability, while strong traction from replacement segment with market share gain led to margin improvement. Majority of the segments like OEM, Industrial, Inverter, UPS etc witnessed improvement in volume during the quarter, while replacement segment witnessed strong growth during the quarter. Industrial segment was the key growth driver during the quarter, partially due to seasonality.