Amara Raja Batteries Limited reports for the quarter ended June 30, 2017
» Gross sales of Rs. 1,671 crores
» PBT of Rs. 151 crores
» PAT of Rs. 100 crores
Tirupati – August 7, 2017: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE Code: 500008 & NSE Code: AMARAJABAT) today announced gross turnover (excluding other income) of Rs. 1,671.28 crores in Q1 FY18 (Rs. 1,456.33 crores) a 14.76% growth and Profit after Tax (PAT) of Rs.99.85 crores (Rs. 130.65 crores).
For the quarter ended June 30, 2017
Rs. in crore
|June 30, 2017||June 30, 2016|
|Profit Before Tax (PBT)||151||191|
|Profit After Tax (PAT)||100||131|
The Automotive battery business continued to maintain the growth trend in all verticals of the business. Vehicle production increased significantly over previous year in passenger cars and two wheeler and this helped the company to register strong volume growth and increase market share in OE segment. Automotive exports and inverter battery sales have grown significantly over the previous years resulting in higher utilization of plant capacities.
The market demand for Industrial Battery business has been subdued during the quarter resulting in lower volume off take. The recent disruption in telecom sector resulted in revenue and margin erosion for large telecom operators putting pressure on tower companies to drive cost efficiencies. The company is actively working with its key customers to offer innovative products with emphasis on cost optimization and enhanced value proposition.
Commenting on the Q1 of FY 18 performance, Mr. Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries Limited said, “The Company has smoothly transitioned into the GST regime. We are hopeful that GST tax structure will create a level playing field and are optimistic of increasing our market share in price sensitive product segments. While higher lead prices and slowing of demand for industrial batteries are concern areas, we are focusing on cost efficiencies across all our operations. Robust growth of key sectors of Indian economy will help us pursue our growth objectives set out for the year.”
About Amara Raja Batteries Limited
Amara Raja Batteries Limited, a company with 26% equity each from Galla Family and Johnson Controls is the technology leader and is one of the largest manufacturers of lead acid batteries for both industrial and automotive applications in the Indian storage battery industry.
In India, Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. Amara Raja is a leading manufacturer of automotive batteries under the brands – Amaron® and PowerzoneTM which are distributed through a large pan – India sales & service retail network.
The Company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The Company’s Industrial and Automotive batteries are exported to Asia Pacific, Africa and Middle East.
Johnson Controls is a global leader in Power Solutions, Automotive Seating Systems and Building Efficiency. Johnson Controls provides batteries for automobiles and hybrid electric vehicles, along with system engineering and service expertise. The Company provides innovative automotive interiors that help driving more comfortable, safe and enjoyable. For buildings it offers products and services that optimize energy use and improve comfort and security. Johnson Controls net sales for the year ended September 30, 2016 is US$ 37.67 billion.
Some of the statements in this news release that are not historical facts are forward looking statements. These forward looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward looking statements. These risks include, but are not limited to, the level of the market demand for our products, the highly competitive market for the types of the products that we offer, market condition that would cause our customers to reduce their spending for our products, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and otherwise not specifically mentioned herein but those that are common to industry.