Mumbai, August 7, 2020:Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major(BSE: 500008 & NSE Code: AMARAJABAT) today reported a revenue of Rs1,151.04 crore in Q1 FY21 (Rs1,814.95 crores)and profit after tax (PAT) of Rs. 62.68crores (Rs140.91 crores). The Earnings Per Share (EPS) for Q1 FY 21was at Rs. 3.67.
For the quarter ended June 30, 2020
Rs. in crores
|June 30, 2020||June 30, 2019|
|Net Revenue from operations||1,151.04||1,814.95|
|Profit After Tax||62.68||140.91|
The performance of the company during the quarter comes against the backdrop of severe disruptions in manufacturing, supply chain, and sales and distribution operations due to COVID-19 lockdown. Despite the challenges, Amara Raja Batteries has performed well to manage the demand and supply, by implementing completely new Standard Operating Procedures across operational branches and units.Various measures such as Amara Raja People Safety Management System and ‘WE@AR’employee digital connect platform were implemented successfully to ensure smooth operations even at the uncertain times.
In the automotive segment, OEM demand was subdued due to lockdown challenges across the country and vehicle production could recommence only in June with graded ramp up. Demand for batteries in after market recovered sharply and supplies were ramped up to cater to market requirements while implementing the new operational guidelines across the business operations.Both AMARON AND POWERZONE channels proactively reached out to consumers through “JumpStart” campaign to keep batteries in charged condition in vehicles parked for long periods during lock down phase.
Industrial Business witnessed sharp demand ramp up in UPS and TELECOM sector. The company responded to the needs of customer segments such as Telecom and UPS to ensure uninterrupted supply of products and services under essential category to support the critical communication networks and data centers across the country.
Exports faced major challenges in the quarter. Markets in many countries were either impacted by lockdowns or disruption in logistics.
Mr. JayadevGalla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “This quarter’s performance holds special place in our hearts and consciousness, not due to the numbers, but due to unflinching commitment and commendable spirit shown by employees, partners and all stakeholders towards the organisation. The leadership here has been duly sensitive towards the health and safety of all our people. We have initiated several measures that’s helping us project responsible growth, including health screening and innovative business performance linked pay(BPLP) which ensures employee health and motivation remains strong throughout the crisis.”
Commenting on the Q1 performance, S. Vijayanand, CEO, Amara Raja Batteries Limited said,“Even as the COVID-19 pandemic disrupted the business operations and normal life in the society, we focused on executing our strategic initiatives in product development, digital transformation and capacity expansion. We are continuing to strengthen our internal policies and looking at newer operating models to maximize the utilisation of resources while ensuring utmost caution in the new normal.”
About Amara Raja Batteries Limited
Amara Raja Batteries Limited is the technology leader and 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, the UPS sector (OEM & Replacement), Indian Railways and to the Power, Oil & Gas, among other industry segments. Amara Raja’s industrial battery brands comprise PowerStack®, AmaronVolt® and Quanta®. The Company 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 the Indian Ocean Rim.
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.