» PBT of Rs. 195 crore
» PAT of Rs. 136 crore
Hyderabad, India – November 7, 2016: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT) today reported Gross sales (excluding other income) of Rs. 1,520 crore in Q2 FY17 (Rs. 1,289 crore) a 18% growth and Profit after Tax (PAT) of Rs. 136 crore (Rs. 123 crore) a 11% growth.
For the quarter ended September 30, 2016
Rs. in crores
|
Particulars
|
Quarter ended
|
|
|
|
Sept 30, 2016
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Sept 30, 2015
|
|
Gross Sales
|
1,520
|
1,289
|
|
Profit Before Tax (PBT)
|
195
|
176
|
|
Profit After Tax (PAT)
|
136
|
123
|
The Automotive battery business continued to maintain the growth trend. A double digit growth in our aftermarket brands, Amaron® and PowerZoneTM, led to further increase in market share. The impressive volume growth in two-wheeler batteries in both Amaron® and PowerZoneTM brands further added significantly to the performance of the business unit. During the quarter, OEM production grew in both four-wheeler and two Wheeler categories, thereby, aiding higher sale of batteries in the OEM sector. This helped us in further consolidating our market shares in this segment. Our key exports markets responded favourable, thereby, helping us show impressive growth in exports. All the above led us to have higher utilisation of plant capacities.
The Company’s Industrial Battery business registered double digit volume growth over Q2 of previous financial year, in a challenging & competitive market conditions. The industrial battery business improved the overall performance by virtue of its “preferred supplier status” with all major customers, efficient after sales service, customer relationship management, optimal product mix and consistent product performance of its flagship brands PowerStack®, Quanta® and QRS Series batteries.
Commenting on the Q2 performance, Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “ As the market place is beginning to become more exciting owing to both domestic and international developments, we are fully geared up to ensure all round improvements to bring about continuous betterment in operations and in the marketing activities. The automotive and industrial businesses are appropriately poised and the capacities are at optimum level of utilization with adequate capacities available to meet the growing demand in different sectors. The four and two wheeler battery expansion projects are progressing on expected lines.”
Commenting on the Q2 performance, Mr. S V Raghavendra, Chief Financial Officer, said, “Operational efficiencies have further improved during the quarter and we are continuing to increase focus on costs optimization in all areas to become cost competitive. Income tax incentives announced recently for Chittoor district, where our capacity expansions are in progress, will result in cash accruals.The Company continues to have healthy liquidity position and the expansion projects are progressing as planned.”
About Amara Raja Batteries Limited
Amara Raja Batteries Limited, a company with 26% equity each from Galla Family and Johnson Controls Inc, USA, 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. The industrial battery brands of Amara Raja are PowerStack®, AmaronVoltTM and Quanta®. 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 countries in Indian Ocean Rim.
Johnson Controls is a global leader in Power Solutions, Automotive Interiors 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 (NYSE: JCI), founded in 1885, is head quartered in Milwaukee, Wisconsin. Its net sales for the year ended September 30, 2015 is US$ 37.18 billion.
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.