» Revenue of Rs. 1,469 crore
» PBT of Rs. 191 crore
» PAT of Rs. 130 crore
Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE:500008 & NSE Code: AMARAJABAT) today reported Gross sales (excluding other income) of Rs. 1,469 crore in Q1 FY16 (Rs. 1,260 crore) a 16.5% growth and Profit after Tax (PAT) of Rs.130 crore (Rs. 122 crore) a 6.8% growth.
For the quarter ended June 30, 2016
Rs. in crore
|June 30, 2016||June 30, 2015|
|Profit Before Tax (PBT)||191||179|
|Profit After Tax (PAT)||130||122|
The Automotive battery business continued to maintain the growth trend in all verticals of the business. In our preferred brands, Amaron® and PowerZoneTM, we grew in double digits in the aftermarket segment. The growth also helped us increase our market share further. The impressive volume growth in two-wheeler batteries in both Amaron® and PowerZoneTM brands further added significantly to the performance of the business unit. During the quarter, OEM production in four-wheeler grew, thereby, aiding higher sale of batteries in the OEM sector, and our volume growth helped us to increase our market share further. Impressive growth in exports helped us to have higher utilisation of plant capacities, and providing a base for further expansion in the Indian Ocean RIM countries. We starting selling tubular batteries manufactured by us during the quarter.
The Company’s Industrial Battery business registered double digit volume growth over Q1 of previous financial year, in a challenging & competitive market conditions. The growth in demand from telecom sector is moderate and is primarily driven by data growth and the drive for energy optimization by Tower Companies. The UPS batteries demand registered a double digit growth.
The industrial battery business improved the overall performance by virtue of its “preferred supplier status” with all major customers, efficient after sales service, customer relationship management, optimal product mix and consistent product performance of its flagship brands PowerStack®, Quanta® and QRS Series batteries.
The Company has progressively started providing total solutions to customers enabling it to forge strategic alliances.
Commenting on the Q1 performance, Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “The Indian economy is on the threshold of taking the leap for higher growth amidst global slowdown. Several positive growth drivers-like good monsoon, favorable government policies, lower crude oil prices, relatively stable currency etc are going to enable the company to grow further and the new race has already commenced in the first quarter of this year. During the quarter, there has been significant strengthening of all core facets of business which has enabled the organization to remain fit to face the challenges of growth effectively. The volume and revenue growth has been the highest ever. All plants are running efficiently and at decent capacity levels. Market shares for the company’s business lines have begun to further increase moderately due to improved product and service quality and brand strength. Production capacities for industrial and automotive lines of business are adequately available and the company is poised for scaling new heights.”
Commenting on the Q1 performance, Mr. S V Raghavendra, Chief Financial Officer, said, “We have adopted IND AS – the new set of accounting standards for financial reporting effective this quarter and the transition has been smooth. Consequent to the adoption of the revised standards there is no significant impact on the financial results of the Company. The operating cash flow generation remained strong driven by growth in volumes and improvement in operating and financial efficiencies. The Company continues to have sequential quarterly revenue growth and maintain healthy liquidity position. Raw material prices are moving favorably, plant capacities are ramping up as planned, employee productivity is growing, product quality is improving and we are aggressively working on further improving cost efficiencies and productivity”
About Amara Raja Batteries Limited
Amara Raja Batteries Limited, a company with 26% equity each from Galla Family and Johnson Controls Inc, USA, 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. The industrial battery brands of Amara Raja are PowerStack®, AmaronVoltTM and Quanta®. 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 countries in Indian Ocean Rim.
Johnson Controls is a global leader in Power Solutions, Automotive Interiors 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 (NYSE: JCI), founded in 1885, is head quartered in Milwaukee, Wisconsin. Its net sales for the year ended September 30, 2015 is US$ 37.18 billion.