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• Amara Raja Batteries records HIGHEST EVER HALF YEARLY Revenue and PBT.
» Revenue of Rs.1,692 Crore
» PBT of Rs. 274 Crore
» PAT of Rs.192 Crore

Amararaja LogoPrague, November 14, 2013: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE Code: 500008 & NSE Code: AMARAJABAT) today reported Net Sales (excluding other income) of Rs.804.72 Crore in Q2 FY14 (Rs. 716.15 Crore) - a 12.37% growth and Profit Before Tax (PBT) at Rs. 133.90 Crore (Rs. 101.77 Crore) - a 31.57% growth.

The performance of the Company for the quarter and six months ended September 30, 2013 are as under:

Rs. in Millions
Particulars Unaudited financials for the quarter ended Unaudited financials for the half year ended Audited financials for the year ended
  30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12 31-Mar-13
Net Sales (excluding other income) 804.72 716.15 1691.57 1403.93 2,961.40
Profit Before Tax (PBT) 133.90 101.77 274.39 214.09 421.82
Profit After Tax (PAT) 94.58 70.10 192.38 146.19 286.71

The Automotive battery business reported double digit growth in revenue, aided by strong volume expansion both in Four-wheeler and Two-wheeler batteries in the replacement market, while the OEM demand continued to be sluggish. The trading volume in home UPS business suffered due to unfavorable season on account of mild summer and good monsoon. The supplies of Two-wheeler batteries to Honda Motors have picked up momentum in line with their throughput enhancement.

The Company’s effort to enhance the capacities of Two-wheeler battery in the existing plant has witnessed some delay and is likely to go on stream by end January 2014. The enhanced capacities will support the Company to commence business with other major Two-wheeler OEMs and to grow the aftermarket business in a big manner. The green field project for enhancement of Four-wheeler capacity is progressing as per schedule and is likely to commence production by Q2 of next financial year.

The Industrial battery business has also reported double digit revenue growth despite capacity constraints and subdued demand for UPS batteries. The Company has substantially enhanced the quality of business through various initiatives in the market coupled with internal efficiencies to improve overall profitability. The Company’s Quick Recharge series of telecom batteries (Powerstack®) are gaining acceptance from all tower companies and operators enhancing the demand. While the OEM demand in UPS sector is under stress, the preference for the Company’s UPS batteries (Quanta®) in replacement market is encouraging.

The Company is confident of continuing its growth in industrial battery business enabled by the ongoing capacity expansions and preferred vendor status built over the years both in the Telecom and UPS sectors. The Medium VRLA battery capacity expansion project will be completed in January 2014 with about 4 months delay due to conscious change in specifications and delay in supply of certain key equipment. Also the Large VRLA expanded capacity will support the business from February 2014.

Commenting on the Q2 performance, Mr. Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries said, “I am happy to note that our sustained good performance continues to be in line with our annual plan and expectations, despite slowing economy, volatile rupee and sluggish demand in the automotive and UPS OEM sectors. The ongoing agitation for a united state of Andhra Pradesh in the Chittoor district has, so far, not had any major impact on the operations of the Company, largely supported by the credibility enjoyed by the organization, he added”.

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. Amara Raja is a leading manufacturer of automotive batteries under the brands - Amaron® and Powerzone®, 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 Asia Pacific, Africa and Middle East.

Johnson Controls is a global leader in Power Solutions, Automotive Seating Systems 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, 2013 is US$ 42.70 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.

For further information please contact:

Sreedhar Kodakalla
Adfactors PR (P) Ltd.
Mobile: +91-9848035385

Dushyant Sharma
Adfactors PR (P) Ltd.
Mobile: +91-9953323022