Amara Raja - King Of Batteries

Amara Raja - Net Profit Up 94%

Industrial and Automotive Battery major Amara Raja Batteries Limited has recorded revenues of Rs. 2597 million (Net Sales: Rs. 2562 million + other income: Rs. 35 million), PBT of Rs. 315 million and PAT of Rs. 206 million for the second quarter of FY 2007-08. For the quarter ended Sep 07 the topline has grown by 94% while PAT rose 62% as compared to the corresponding quarter of last year.

Announcing the results, Mr. Jayadev Galla, Managing Director remarked that growth has been fed by good demand from the telecom, UPS and after market segments. “We have shown consistent growth over the last 10 quarters with equal contribution from both Industrial and Automotive divisions. Our expansion plans announced during the last one year are progressing as per schedule and will help to sustain this pace of growth,” he said.

“Our performance on profitability demonstrates the resilience of our business model. Improved realizations and superior management of key operating parameters has helped us to partially mitigate the adverse impact on account of steep increase in lead. While we continue to watch the lead price scenario very closely, we will work to reduce the impact on our margins as much as is possible,” he added.

“The financial position of the company continues to be comfortable. The stock split from Rs.10 to Rs. 2 announced during June has taken effect from 26th September 07,” observed Mr. K. Suresh, Financial Controller.

For the full year period ending March 2007, ARBL had recorded 67 % growth in revenues at Rs 7.45 billion (Rs. 4.46 billion in FY 2005-06). The PBT shot up by 91% to Rs. 712 million and PAT 97% to Rs. 470.4 million during the same period.

Amara Raja Batteries Limited, an Amara Raja-Johnson Controls Company with 26% equity from 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 segment (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. Amara Raja manufactures and sells automotive batteries under the brand name AMARON ® which is distributed through a large pan-India sale-service retail network.

The company supplies automotive batteries under OE relationships to Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra & Mahindra, Maruti, Hyundai & Tata Motors. The company is an exclusive supplier to Daimler Chrysler, Ford and Swaraj Mazda. The Company’s Industrial and Automotive batteries are exported to APAC, Africa and the Middle East.

Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is headquartered in Milwaukee, Wisconsin. Its sales for 2006 totalled US$ 32.24 billion.