Posts 12.1% revenue growth in FY19
Amara Raja Batteries Ltd., India’s leading industrial and automotive battery major, has reported a revenue of Rs. 1,566.73 crores in Q4 FY19 (Rs. 1,580.74 crores) with a growth of (-0.9%) and profit after tax of Rs. 119.34 crores (Rs. 109.80 crores).
The company reported for the financial year 2018-19 a revenue of Rs. 6,793.11 crores (Rs. 6,059.15 crores) with a growth of 12.1% and profit after tax (PAT) of Rs. 483.49 crores (Rs. 471.32 crores). The earnings per share (EPS) for FY 2018-19 was at Rs. 28.31.
Amara Raja’s automotive battery business continued its healthy double-digit growth during the year. The aftermarket battery business, in both four-wheeler, and the two-wheeler space, witnessed demand pick-up for the AMARON and POWER ZONE brands aided by channel expansion initiatives. The OEM business saw some pressures in growth, due to slowdown in new vehicle sales. The inverter segment also saw significant uptick in volumes in the tubular battery business, resulting in improved capacity utilization.
The automotive exports had significant boost with sustained volume growth in many regional markets. This resulted in gaining shares in many countries leading to substantial growth in the business.
The industrial business witnessed a moderate growth in volumes in segments like UPS, and Railways. Exports registered good growth during the year with expansion of the market share in majority of the countries where we are present. The telecom volumes remained subdued due to consolidation of the tower companies in the Telecom Market and the competitive pressures.
Commenting on the Q4 performance, Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Ltd., said: “We are tracking our growth plans with significant investments into capacity building across various products and process technologies for meeting market demand including the emerging opportunities in renewable energy and Electric Mobility. We will continue to pursue opportunities for strategic partnerships that will be complimentary to our vision and growth objectives.”
Mr. S. Vijayanand, CEO, Amara Raja Batteries, commented: “With continuous growth in Automotive segment and demand for industrial batteries picking up in international markets we have further strengthened our operations by opening up our first overseas subsidiary in UAE and are in line with our expansion plan with other markets. We have commissioned the stamped grid technology facility for two-wheeler battery manufacturing. The advanced stamped grid technology project for four-wheeler batteries is progressing as per scheduled timelines and will be commissioned during FY20.”