Exide Industries is engaged in the manufacture of lead acid storage batteries and also operates in the segments of solar lanterns and homelights. We had recommended the scrip on May 15, 2017, on the basis of expected increase in replacement demand, price hike and technology upgradation. The company’s Q2FY18 results were disappointing as the volume growth did not translate into higher earnings. The company's revenue in Q2FY18 increased by 9.2% YoY; however, the margin pressure kept the EBITDA flat. Also, PAT declined by 25.4 per cent YoY to Rs.135 crore. We don’t see a near-term recovery in volumes and hence urge investors to EXIT from the stock.