Why did Exide correct so sharply on 08 June in the markets?

The stock slipped more than 8% on the back of disappointing results for the Mar-20 quarter. Exide reported 21% drop in sales at Rs.2055 crore for the Mar-20 quarter on a YOY basis. Its profits were also 20% lower at Rs.168 crore. The pressure clearly came from the slowing automotive sector which has been facing the challenges of demand, technology and regulatory shifts. Normally, the last quarter is considered to be a good quarter for auto sales and that got badly affected by the COVID-19 affliction. The gross profits of the company expanded but that was more due to the positive inventory valuation of lead.