February 11, 2022
Amara Raja Batteries reports 21% increase in Revenue from Operations in Q3 of FY22 — February 11, 2022
Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT), today, reported profit before tax of Rs.197.05 Crores for Q3 of FY 22 as compared to Rs 259.90 crores during Q3 FY 21. The Revenue for Q3 of FY 22 stood at Rs 2,365.07 crores as compared to Rs 1,960.12 crores during Q3 of FY 21. The Earnings per Share (EPS) for Q3 of FY 22 was at Rs 8.47.
For the quarter ended December 31, 2021
|Quarter Ended (Rs. in crores)
|December 31, 2021
|December 31, 2020
|Net Revenue from operations
|Profit Before Tax
Revenue growth in the current quarter is aided by the increase in Aftermarket volumes across all product segments. The slowdown in the OEM production has resulted in lower volumes in both 2W and 4W batteries. Supply chain constraints are impacting the export volumes.
Industrial Volumes are stable across all segments and exports registered impressive growth. Demand signals from Telecom and UPS are robust.
Easing of the Covid restrictions should provide further opportunities to improve our capacity utilization. Margins are under pressure due to higher input costs. While some of these costs are recovered through price changes, focus is to improve internal process efficiencies thereby improving the operating margins.
Mr. Jayadev Galla, Chairman & Managing Director of the Company, said “In line with our Energy and Mobility Strategy, we have initiated steps on value maximization of the lead acid business, pursuing opportunities in expanding our manufacturing foot print, and also making vital investments in technology partnerships, in the New Energy space”
About Amara Raja Batteries Limited
Amara Raja Batteries Limited is an Energy and Mobility enterprise and one of the largest manufacturers of energy storage products for both industrial and automotive applications in the Indian 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.