Amara Raja Batteries Limited reports 12.1% growth in 2019
Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code:AMARAJABAT) today reported a revenue of Rs 1,566.73 crore in Q4 FY 19 (Rs 1580.74 crores) with a growth of (-0.9%) and profit after tax (PAT) of Rs. 119.34 crores (Rs 109.80 crores). The Earnings Per Share (EPS) for Q4 was at Rs. 6.99 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. The Board of the Company, which met today, amended the Dividend Distribution Policy and enhanced the dividend payout limit from existing “15%” to “30%” of PAT (excluding corporate dividend tax).
The Board recommended a final dividend of Rs. 5.08 per share (face value of Re. 1/- each) at 25% of PAT, subject to theapproval of the shareholders at the ensuing Annual General Meeting. In November 2018, 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, 2019, including the proposed final dividend amounts to Rs. 7.08 per share, which is line with the revised dividend distribution policy of the Company. For the quarter and year ended March 31, 2019- The Automotive battery business continued healthy double digit growth during the year.
The aftermarket battery business, in both four wheeler and two wheeler space, witnessed demand pick up for 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 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 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 Limited said, “We are tracking our growth plans with significant investments into capacity and capability building across various products and process technologies for meeting market demandincluding 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.”. S. Vijayanand, CEO, Amara Raja Batteries Limited 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 stampedgrid technology project for four wheeler batteries is progressing as per scheduled timelines and will be commissioned during FY20.”.
About Amara Raja Batteries Limited 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®, AmaronVoltTMand 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, andTata Motors. The Company’s Industrial and Automotive Batteries are exported to countries in the Indian Ocean Rim.