Amara Raja Batteries Limited

Q3 FY 2022 Review

Amara Raja Batteries Limited reported net revenue of ₹2,365.87 crores for the quarter ended December 31, 2021, compared to ₹1,960.43 crores for the quarter ended December 31, 2020. EBIT and Profit After Tax were ₹200.82 crores and ₹145.30 crores for the quarter ended, 31, 2021, as compared to ₹262.51 crores and ₹193.69 crores, during the corresponding quarter of the previous year.

Amara Raja Batteries Limited - Investment Summary

Overview

• Amara Raja to invest in InoBat Auto, a European technology developer and manufacturer of premium innovative batteries for E-mobility.

• The initial investment will give Amara Raja a key foothold in the thriving European EV Ecosystem. Multiple battery Giga factories are being set up to support the region’s determined EV push, including the UK, which is seeing a rising need to address the increasing demand for electric vehicles.

Amara Raja Batteries Limited - Quarterly Summary

Business

• Amara Raja Batteries Limited, the flagship company of the Amara Raja Group, 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.

• The company has a market share of around 40% in the organized market in lead-acid batteries.

• In India, Amara Raja is a preferred supplier to major Telecom Service providers, Telecom Equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways, and Power Oil & Gas, among other industry segments.

• The company has prestigious original equipment manufacturers clients. The company’s Industrial and Automotive batteries are exported to 35 countries across the globe.

• The company has strengthened its position in the green energy space by launching long warranty variants of the Amaron Solar Tubular & VRLA series. The company now caters to a complete range of 2 volt & 12-volt VRLA and a tubular range of batteries to suit all applications in renewable energy space.

• The company, on April 30, 2021, received closure orders from the Andhra Pradesh Pollution Control Board (APPCB) for the company’s plants situated at Karakambadi Tirupati and Nunegudlapalli village in Chittoor District. Consequently, the company went in ap against the order of the High Court of Andhra Pradesh at Amaravati, which granted interim orders; the management is working with APPCB to satisfactory resolve the matter.

• Out of the total revenue, 87.67% of revenue have generated from India and 12.33% from other countries in FY 2021, compared to 87.44% and 12.56% in FY 2020.

Revenue Trend

Topline and Bottomline trend (crores)

• The company’s promoter’s shareholding was reduced from 52.06% to 28.06% due to the termination of shareholder agreements between Galla Family, Johnson Controls (Mauritius) Private Limited, and Johnson Controls Battery Group as of April 01, 2019.

Ratio Analysis