(1888PressRelease)
June 02, 2009 - Hyderabad - Leading Industrial and Automotive Battery company Amara Raja Batteries Limited (BSE Code: 500008 & NSE Code: AMARAJABAT) has announced a topline growth of 21% for FY 2008-09, recording net revenues of Rs. 13,177.23 compared to Rs.11089.36 million in the FY 2007-08. For the same period, the company achieved a PBT of 1,226.59 million (Rs.1459.38 million) after providing for a sum of Rs. 322 million towards foreign exchange loss(both cash & national) due to depreciation of rupee against US dollar. The company earned a PAT of Rs.804.78 million.
During the fourth quarter of the financial year 2008-09,the company recorded net sales of Rs. 3,302.44 million, a growth of 8% despite reduced lead prices. The profit after tax at Rs. 208.49 million also showed a growth of 7%.
The board of directors have recommended a dividend of Rs. 0.80 per share of Rs. 2/- each (40% on the diluted paid up capital consequent to 1:2 bonus (one share to two share held) issued during 2008 -09, subject to the approval of the shareholders in the ensuing Annual General meeting.
Rs. Million
Fourth Quarter Ended
Full Year
31-Mar-09 31-Mar-08 FY 08-09 FY 07-08
Gross Sales 3831.73 3831.51
3,302.44 3181.04
421.75 395.03
208.49 261.84 15,839.54 13499.87
1377.23 11089.36
1,226.59 1459.38
804.78 943.63
Net Income
PBT
PAT
The industrial batteries division continued its growth momentum aided by telecom and UPS segments. During the year, the manufacturing capacity of large VLRA (Powerstack) has been doubled to 900 million Ah. Also, the project to enhance Medium VLRA battery (Quanta ) capacity by 50% has been initiated. The Company continues to enjoy preferred supplier status with leading telecom operators and UPS manufacturers. The division clocked a compound growth rate of 50% over the last 4 years.
The automotive battery division’s growth was in line with the industry growth. The division has maintained the market share in both the segments – OEM and After Market. During the year the company tied up with Maruti Suzuki India Ltd for retailing Amaron MGB(Maruti Genuine Battery) through Maruti Authorized Service Centers. Further, the division has also finalized an agreement with TATA International Ltd for exports of automotive batteries to select African Countries under Amaron brand name.
During the year the company introduced motor cycle batteries (with VLRA technology) under the brand Amaron Pro Bike Rider TM which has been well accepted by the customers. The existing motorcycle & small VLRA battery capacity of 1.8 million will be enhanced to 2.40 million to cater to growing demand.
The company expanded its Amaron R franchisee & retail network to 189 nos & 18,000 nos, and consolidated its presence through 600 PowerZoneTm outlets in semi urban and rural locations.
Brand building initiatives through motor sport sponsorships helped the Amaron brand to reach to the youth. Despite a slowdown in automotive industry in recent times, the Automotive Battery Division continues to progress ahead, enabled by its focus on Channel building and realigned portfolio of product offerings.
Awards/Recognitions:
The company was recognized for HR strategy by Employer Branding Institute of India with two regional awards for “Best HR Strategy in line with Business” and “Continuous innovation in HR Strategy at work”. The company also received ‘Corporate Excellence Award in Marketing’ for its initiatives from Amity Business School, Noida. The Company was accredited for its Six Sigma initiative, to increase ball mill productivity through process optimization, by Confederation of Indian Industry(CII) with an award on all India basis.
Speaking after the board meeting, Mr. Jayadev Galla, Managing Director , Amara Raja Batteries Ltd, said, “ Despite the slowdown in automotive sector, drop in lead prices and steep rupee depreciation which impacted our growth, the performance of the company during FY09 was satisfactory. The Government’s economic relief measures, lower inflation and our focus on customers helped us to tide over the impact of the slowdown in the economy. Going forward, with a stable government at the centre, appreciating rupee and relatively stable lead prices, we are cautiously optimistic of the company’s growth.”
Mr. Suresh K, Financial Controller, Amara Raja Batteries Ltd, said, “On the financial front, despite forex losses, the company continued to enjoy strong liquidity. With the reaffirmation of credit rating (AA-/Stable & P1+) by CRISIL for our borrowing programmes and health internal cash generation, we are confident of meeting the funding requirement for the ongoing expansion programmes without major impact to the interest cost.”
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 and 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.
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 2008 totaled US $ 38.06 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.
Media Contact
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Ogilvy Public Relations Worldwide, Chennai
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Email : rashi.gupta ( @ ) ogilvy dot com / vinod.kumar ( @ ) ogilvy dot com
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