Amara Raja Q1 Net Revenues grow 70%: PAT up 90%
Milwaukee, USA, July 27, 2007 - Industrial and Automotive Battery major Amara Raja Batteries Limited (BSE Code: 500008 & NSE Code: AMARAJABAT)has recorded revenues of Rs.2173.94 Million (Net Sales : Rs.2145.96 Million + Other Income : Rs.27.98 Million), PBT of Rs.274.64 Million and PAT of Rs.179.06 Million for the first quarter of FY 2007-08. Quarter to Quarter , the top line has grown by 70.09% while PAT rose 90%.
Announcing the company's Q1 results, Managing Director Mr. Jayadev Galla said: "Buoyant growth in automotive, telecom and UPS segments have driven our growth this quarter. Our Capacity exapnsion, which has been growing in phases, has allowed us to garner a good portion of these growing sectors. Both Industrial and Automotive Battery Businesses have benefited from this."
Growth in Industrial batteries has been fuelled by greater share of business from Telecom customers and the growth in voulmes of UPS batteries. In Automotive, the compnay continues to increase OE Volumes which enhance its market-share in the OE space. The company currently has a pan-India sales and service network with 152 franchisees, 120 Pitstops and over 15000 active retailers. Amara Raja continues to focus on increasing export volumes - both in Industrial and Automotive.Speaking after the Board Meeting, Mr.Ramachandra N Galla, Chairman said: "This fiscal will witness the positive Impact of two new initiatives we have launched. The first one is the launch of our two wheeler batteries, shceduled for Jan 08. Our plan is to be a technology leader in this segement too. The other big development is the lauch of PowerZone the innovative new concept for power solutions for the rural and semi-urban consumers. Launched in May 07, the network will touch 500 oulets by March 08. Looking at the tremendous response we have received both from trader and consumers, we are confident this will be a sizeable contributor to our topline from the next fiscal."
For the full year period ending March 2007, ARBL had recorded 63.8% growth in gross sales at Rs.712 billion (Rs.446 billion FY ending March 2006). The PBT shot up by 90.64% to Rs.712 million and PAT 97.27% to Rs.470 million during the same period. The company had announced 35% dividend and also proposed stock split from Rs.10/- face value to Rs.2/- subject to the approval of the shareholders at the ensuing AGM scheduled on 14th August 2007.
Mr.Suresh K, Financial Controller, said: "Lead prices continue to be an area of concern and we are doing our utmost to ensure that the impact does not affect our profitability in the long run."
About Amara Raja
Amara Raja Batteries Limited,an Amara Raja-Johnson Controls Company with 26% equity from Johnson Controls, is the technology leader in the Indian storage battery industry, manufacturing batteries for both Industrial and Automotive applications.
In India, Amara Raja is the preferred supplier to major telecom operators and equipment manufacturers, Indian Railways and a range of industry segments including Power, Oil & Gas and UPS applications. 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 APAC, 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 2006 totaled US$ 32.24 billion.
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.
Vanitha Nav Jain
Ogilvy Public Relations Worldwide
Phone: +91 9940544411
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