Amara Raja Batteries Reports Rs 661 Cr Profit in FY20

Amara Raja Batteries has reported a Net profit of Rs 660.82 crores for the year 2019-20 registering an impressive 37% growth over the previous year (Rs 483.49  crores). Revenue for FY20 stood at Rs 6,839.46 crores as compared to Rs 6,793.11 crores during FY19. The Earnings per Share (EPS) for FY 2019-20 was at Rs 38.69.

The Company reported for the Jan-Mar quarter revenue of Rs.1,581.39 crores (Rs 1,566.73 crores) and profit after tax (PAT) of Rs. 136.65 crores (Rs 119.34 crores) The Earnings Per Share (EPS) for Q4 FY 20 was at Rs 8.00

For the quarter and year ended March 31, 2020

Rs. in crores

Automotive Business Division has substantially overcome the demand slowdown in Auto OE segment aided by significant traction in volume growth in domestic replacement market and exports under challenging market conditions. In spite of market disruptions towards the year end due to the COVID-19 induced lockdown restrictions, both the automotive brands, AMARONTM and POWERZONETM, continued strong growth momentum across vehicle segments. However, growth in home UPS segment has been moderate as the seasonal demand for inverter batteries was severely impacted by the lockdown restrictions in March.

Despite the adverse impact of COVID-19 on the year-end sales and demand compression in telecom sector during the year, the Industrial Battery Business has improved its performance in FY20. This was achieved through efficient after sales service, customer relationship management and consistent product performance of its flagship brands PowerStack®, Quanta® and QRS Series, Amaron Volt® batteries. The UPS Business continued to grow on the back of strong performance in the Data Centre Market. The Quanta® HWS series batteries became the preferred battery for all the major UPS OEM’s. The volumes grew in all other segments of the business, barring the Telecom segment. Export sales in Industrial battery division sustained momentum registering strong growth in Middle east and Africa while South East Asia sales have been subdued.

Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “FY20 saw us performing strongly against odds in the overall business environment and helped us emerge stronger. The automotive sector is dealing with a lot of challenges due to regulatory changes, technology shifts and demand uncertainty due to COVID-19 lockdown. However, accelerated digital adoption and increased data usage by public during the lock down period also resulted in silver lining in telecom sector after many years of uncertainty and demand slow down. It is early to comment on the medium and long term impact of the overall health and economic crisis caused by COVID-19. We are closely monitoring the emerging situation and have put in place robust risk management and agile response mechanism to recalibrate our strategic growth plans.”

Commenting on the Q4 performance, S. Vijayanand, CEO, Amara Raja Batteries Limited said, “ARBL’s category leadership, continued focus on innovation and strong customer portfolio, position us well for 2020 and beyond. The company has taken up many initiatives to deal with the global health crisis caused by COVID-19. All essential product and service delivery to key customer segments were carried out uninterrupted during the lock down phase. The company’s strong cash flows and healthy liquidity position is of great support to navigate the current crisis.”