Amara Raja records highest ever revenues, profits

May 14, 2013: Car and bike battery manufacturer Amara Raja Batteries has recorded a total revenue of Rs 2,961 crore (excluding other income) in 2012-13, a growth of 25 percent as compared to Rs 2,360 crore in FY 2011-12. Profit After Tax stood at Rs 287 crore, up 33 percent as against Rs 215 crore in the previous year.

For Q4, the company recorded net sales of Rs 80.1 crore (Rs 67.2 crore for the previous year) and net profit after tax of Rs 59.6 crore (Rs 58.3 crore for the previous year). The Q4 FY13 profits would have been higher but for provision of Rs 7.55 crore towards impairment in value of asset and additional depreciation of Rs 5.15 crore due to revision in estimated useful life of certain assets. The board which met in Milwaukee, USA, has appointed Jayadev Galla, managing director as vice-chairman and MD.

Amara Raja’s automotive battery business reported strong double-digit revenue growth supported by good volume increase of 20 percent in four-wheeler and 37 percent in two-wheeler batteries, over 2011-12, despite capacity constraints in four-wheeler batteries during the year. 2012-13 saw double-digit growth in the automotive OEM business, notwithstanding depressed automobile production in the country due to unfavorable macro-economic conditions. Apart from volume growth in both 4-wheeler and 2-wheeler replacement segments, the company says that continuing consumer preference for Amaron and PowerZone enabled to make gains in market share, both in the aftermarket and OEM businesses.

All-new plant coming up

During the year, investments for enhancing automotive 4-wheeler battery capacity from 5.60 million units to 8.25 million units per year and 2-wheeler battery capacity from 4.80 million units to 8.40 million units per annum through green and brownfield projects were approved.

The company has put in motion plans to set up an all-new manufacturing facility near Chittoor in Andhra Pradesh. The plant, slated to become operational in the first half of 2014-15, will come up around 70km away from the company’s existing facility. The investment of Rs 440 crore is in addition to an already approved investment of Rs 304 crore to expand capacities in medium VRLA, automotive four-wheeler and two-wheeler product lines.