Hyderabad July 25, 2008:- Amara Raja Batteries, India’s leading Industrial and Automotive Battery company (BSE Code: 500008 & NSE Code: AMARAJABAT) has recorded revenues of Rs.3252.17 million (Net Sales: Rs.3144.94 million + other income: Rs.107.23 million), PAT of Rs.149.17 million and PBT of Rs.238.32 million for the first quarter of FY 2008-09. For FY 09 first quarter, the top line has grown by over 49%.
 

Value in Millions Rs
	First Quarter ended		Year Ended 31-Mar-08
	30-Jun-08	30-Jun-07
Gross Sales	3840.87	2685.68	13499.86
Net Income	3144.94	2145.96	10833.26
PBT	238.32	274.64	1459.38
PAT	149.17	179.06	943.63

The PBT for the quarter, excluding notional exchange loss of Rs. 91 million on foreign currency loans, has increased by 20% to 329.17 million over Q1 FY 2008 - 08

On the company’s Q1 results, Managing Director Mr. Jayadev Galla said: “Growing demand in telecom and UPS segments continues to increase our industrial batteries business. The growth in automotive battery segment has also contributed to the top line. Our plans to increase capacity and distribution network are going as per schedule and would contribute to our top line growth”.

“To further consolidate our growing presence in the industrial battery markets, the Company has decided to invest Rs.520 million to enhance capacities. Looking at our current strengths, on going capacity expansions and new business opportunities we are confident of achieving our objectives for FY 2009,” he added.

Speaking after the Board Meeting, Mr. Ramachandra N Galla, Chairman said: “Lead prices have moderated to around US $ 2000 levels. While the expectation is that the price would hover in the same range for the next quarter, this needs a close watch. The current double digit inflation rate and the resultant pressure on the economy is another key area, we need to be cautious about.”

The newly launched two wheeler batteries Amaron Pro Bike RiderTM with breakthrough VRLA technology has received good response from the market. The pan-India retail network of 120 Pitstops, 400 Powerzones and 18000 retailers serviced by 175 franchised distributors is in line with company’s distribution expansion plans.

For the full year period ending March 2008, ARBL had recorded 81% growth in net revenues at Rs.11089.36 million (Rs. 6055 million in FY 2006-07). The PBT shot up by 105% to Rs. 1459.38 million and PAT 100% to Rs. 943.63 million during the same period. The company had announced 35% dividend and recommended bonus shares in the ratio of 1:2.

Mr. Suresh K, Financial Controller, said that the bottom line was impacted due to foreign currency loan translation loss on account of rupee depreciation against USD amounting to Rs.91 million as per the requirement of Accounting Standard 11. The Company’s fund mobilisation for capex is on track with its stable rating outlook by CRISIL both for its short term and long term borrowings.

About Amara Raja Batteries Ltd

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 Asia Pacific, 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 2007 totalled US$ 34.6 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 market demand for our products, the highly-competitive market for the types of products that we offer, market conditions that could 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 other risks not specifically mentioned herein but those that are common to industry.

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