- Amara Raja Batteries Limited reports for financial year 2016-17
» Gross sales of Rs. 5,981 crores
» PBT of Rs. 702 crores
» PAT of Rs. 478 crores
- Amara Raja recommends 4.25 per equity share of Re. 1/-(425%) as dividend.
Hyderabad – May 24, 2017: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE Code: 500008 & NSE Code: AMARAJABAT) today announced gross sales (excluding other income) of Rs. 5,981 crores with a growth of 15% in Financial Year (FY) 2016-17 as compared to Rs. 5,184 crores in FY 2015-16. The Profit After Tax stood at Rs. 478 crores as against Rs. 492 crores of the previous year. The Earnings Per Share (EPS) for the year was at Rs. 28.01.
For the fourth quarter of FY 2016-17, the Company recorded gross sales of Rs. 1,512 crores (Rs. 1286 crores for the previous year) and net profit after tax of Rs. 99 crores (Rs. 109 crore for the previous year).
The Board of the Company, which met today, approved the audited financial statements for the financial year ended March 31, 2017 and recommended a dividend of Rs. 4.25 per share (face value of Re. 1/- each) in line with the dividend distribution policy, subject to the approval of the shareholders at the ensuing Annual General Meeting
|Quarter ended||Year ended|
|March 31, 2017||March 31, 2016||March 31,
|March 31, 2016|
|Profit Before Tax (PBT)||148||163||702||723|
|Profit After Tax (PAT)||99||109||478||492|
Automotive Battery Business
During the year the automotive battery business witnessed strong performance across the OEM and Aftermarket segments both in four wheeler battery and two wheeler battery markets leading to sustained market share increase. The capacity expansion plans have been on target which helped to meet increasing demand for both AMARON® and PowerZONETM brands as well as enabled us to report an impressive growth in export volumes.
The commercial production commenced in the newly established tubular battery plant and the planned ramp up in capacity in the coming quarters will help to address the demand from inverter, e-rickshaw and solar market segments.
While demonitisation had partially impacted the two wheeler demand during Q3 and Q4, there are clear signals of sustained demand for passenger cars and two wheelers and this should help the company to further consolidate market position across all segments.
Industrial Battery Business:
The recent developments in the telecom market, with the entry of JIO, have disrupted the revenue models of all Telcos and tower companies forcing them to relook at their cost structures. This has impacted the volume off-take for replacement batteries during the last quarter. In addition, the increase in lead price presented challenging market conditions in both Telecom and UPS segments. Under this competitive environment, the company has achieved moderate growth in volume in industrial battery business during the year. The company has initiated necessary measures in all key customer segments to provide integrated solution offering for backup power requirements.
Commenting on the full year performance, Mr. Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries Limited said, “We had another year of continued strong topline growth backed up by strong gains in automotive battery business. The capacity led growth strategy of the company has paid dividends with further strengthening of our automotive battery brands. The tubular manufacturing capacity provides us flexibility in our product offering to various emerging application segments such as e-rickshaw and solar energy storage. Increase in lead prices towards the later part of the financial year presented cost challenges which are being addressed through a mix of pricing and aggressive cost management strategies. We have created adequate capacities for further growth of business and also brand visibility. The performance of the company is recognized by various awards that we have won during the year reinforcing our commitment to positive customer experiences, business innovation and operational excellence.”
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.