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Amara Raja Batteries Limited reports for the financial year 2017-18

The Board recommends a final dividend of Rs. 2.15 per equity share of Rs. 1 each (215%) for the financial year 2017-18

Milwaukee, USA – May 18, 2018: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT) today reported net revenue of (excluding other income) of Rs. 6,059 crore with a growth of 14% in Financial Year (FY) 2017-18 as compared to Rs. 5,317 crores in FY 2016-17. The EBITDA stood at Rs.883 crores as against Rs.849 crores of the previous year. The Earnings Per Share (EPS) for the year was at Rs.27.59.

The Board of the Company, which met today, approved the audited financial statements for the financial year ended March 31, 2018 and recommended a final dividend of Rs. 2.15 per share (face value of Re. 1/- each), subject to the approval of the shareholders at the ensuing Annual General Meeting. In November 2017, the Board declared and paid an interim dividend of Rs. 2 per equity share of ` 1 each (200%). The total dividend for the financial year ended March 31, 2018, including the proposed final dividend amounts to Rs. 4.15 per share, which is line with the dividend policy of the Company.

For the quarter and year ended March 31, 2018

Particulars Quarter ended Year ended
March 31, 2018 March 31, 2017 March 31, 2017 March 31, 2017
Net Revenue from operations 1,580 1,344 6,059 5,317
Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) 210 184 883 849
Profit Before Tax (PBT) 174 148 714 702

The Automotive battery business has achieved strong volume growth helped by buoyant Auto sector growth. During the year demand for batteries in replacement market has seen healthy growth in passenger car segment as well as motor cycle segment. Both AMARON and POWER ZONE brands continue to perform exceptionally well with increased market reach and strong consumer preference.

The Industrial battery business witnessed muted demand growth as a result of Telecom industry consolidation moves. However, the volume growth across UPS and Railway segments have been healthy and helped increase market share in these segments.

Commenting on the Q4 performance, Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “The buoyancy in automotive sector presents us significant opportunities to continue our own growth momentum. This has helped the company to offset some of the impact due to subdued telecom demand. The electric mobility and energy storage opportunities

will open up new growth avenues for us and we will continue to invest in strengthening the brands, distribution channels, technology and manufacturing capacities to further consolidate our market position.”

S. Vijayanand, CEO, Amara Raja Batteries Limited commented that "The Company is focused on broad basing the telecom customer portfolio and geographic spread to tap into new opportunities. Coupled with aggressive cost management strategies, this should help us to continue to grow our Industrial battery business. We are encouraged by the significant growth in export volumes both in automotive and industrial products and will continue to pursue strategic growth opportunities in focused overseas markets. The ongoing capacity expansion programs are on track and have been helping us meet the increasing demand for various product lines. We continue to closely calibrate our pricing decisions in tandem with volatile lead prices and depreciating rupee."

About Amara Raja Batteries Limited

A company with 26% equity each from the Galla Family and Johnson Controls, 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®, AmaronVoltTM 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.

Johnson Controls

Johnson Controls is a global diversified technology and multi industrial leader serving a wide range of customers in more than 150 countries. Our 120,000 employees create intelligent buildings, efficient energy solutions, integrated infrastructure and next generation transportation systems that work seamlessly together to deliver on the promise of smart cities and communities. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. We are committed to helping our customers win and creating greater value for all of our stakeholders through strategic focus on our buildings and energy growth platforms.

Johnson Controls Power Solutions

Johnson Controls Power Solutions is a world leader working in partnership with our customers to meet increasing market demands for energy storage on a global scale. We create the most advanced battery technologies for virtually every type of vehicle on the planet. Our employees develop, manufacture and distribute the smartest portfolio of lead-acid and lithium-ion technologies in the world. These technologies deliver uniquely sustainable, next-generation performance. We partner with our customers at every link in the supply chain, contributing to the communities we serve and the planet we share

Safe Harbor

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.