Amara Raja Second Quarter Net Revenues up 33%
Hyderabad, October 30, 2008:- India’s leading automotive and industrial battery manufacturer Amara Raja Batteries Limited (BSE Code: 500008 & NSE Symbol: AMARAJABAT) declared its unaudited financial results for the quarter ended September 30, 2008. The company recorded Net Revenues of Rs.3463 million (Rs.2597 million) for the period – an increase of over 33%. The Net Profit of the Company was Rs.188 million as against Rs.206 million.
During the quarter, the Company has made a healthy PBT growth of 33%, however due to the provision of Rs.129 million towards translation loss arisen out of depreciation of Rupee against USD, the PBT was lower at Rs.290 million.
The industrial battery segment continued to grow at a decent pace driven by continuing increase in demand from the telecom and UPS sectors. While the slowdown in the OE market impacted the automotive battery segment, the improved after market sales has helped the Company maintain the top line growth in the automotive battery business.
The lead price continues to remain volatile and the recent softening of price has been neutralised by the depreciation of Rupee against USD.
After the board meeting, Mr. Jayadev Galla, Managing Director, Amara Raja Batteries observed, “The fast changing economic factors globally and the resultant impact in India present a great challenge. We will continue our close watch over the developments and work towards our targets.”
“The liquidity position and the debt-equity ratio of the Company continues to be confortable which will be levaraged to mobilise both short term and long term fund requirements of the Company for its working capital and projects at competitive rates”, commented Mr.Suresh Kalyan, Financial Controller.
About Amara Raja Batteries Ltd
About 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 Segments (OEM &Replacement), Indian railways, 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.
Company supplies automotive batteries under OE relationships to Ashok Leyland, General motors, Hindustan Motors, Honda, Mahindra & Mahindra, Maruti, Hyundai and 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.
The Corporate office of ARBL has been shifted to Hyderabad to better utilize the newly developed infrastructure and the consequent lavational advantage in the middle of the country.
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 system engineering and service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is head quartered in Milwaukee, Wisconsin. Its sales for 2007 totaled US $ 34.6 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.
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