Tirupati: Driven by the revival in demand across all key sectors of the business, Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT), today reported a revenue of Rs 1960.12 crore in Q3 FY21 (Rs 1747.81 crores) and Profit Before Tax (PBT) of Rs 259.90 crores (Rs. 217.36 crores). The Earnings Per Share (EPS) for Q3 FY 21 was at Rs. 11.31
For the quarter ended on December 31, 2020,
Rs. in crores
|December 31, 2020||December 31, 2019|
|Net Revenue from operations||1960.12||1747.81|
|Profit Before Tax||259.90||217.36|
The Board of Directors also approved payment of an interim dividend of Rs. 5/- per equity share (representing 500%) on face value of Re. 1/- each for the financial year 2020-21.
In the automotive segment, revenue growth is aided by consistent growth in OEM and aftermarket segments and also the Export segment registered robust growth. The Telecom and commercial UPS market segments have also recorded a strong growth in the third quarter. Manufacturing capacities are fully ramped up to the optimum utilisation across all segments.
During the quarter ARBL has inaugurated the “Advanced Lithium Technology Research Hub” with Pilot plant facility for cell development. Amara Raja has developed a wide range of battery packs for e-Mobility and Energy storage applications and has secured approvals from various OE’s and fleet operators for commercial supplies.
To further support the sustainability initiatives, ARBL is setting up a 50MW solar power plant in Chittoor District of Andhra Pradesh at a total outlay of Rs 220 cr. This will further reduce the cost of power and simultaneously bring down the carbon footprint of the company.
As part of the overall lead procurement strategy, ARBL will set up a greenfield lead recycling unit with a capacity of 1 lac tons. This will help the company comply with recycling standards whilst adopting advance technology in the most environmentally friendly manner. The total capital outlay for this project is expected to be Rs 280 cr to be spent over the next 18 months.
Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited, said, “The Indian economy has started showing sharper signs of recovery, with reduction in COVID prevalence and ongoing vaccination drive boosting industry confidence. The rebounding of the economy, with recent lessons, is improving the prospects of various market segments, especially those in which were are operating. The Indian Government has recently announced many initiatives and PLI schemes which will accelerate the growth of E-mobility and renewable energy markets. We are assessing the investment opportunities in advanced and futuristic energy storage technologies to address these emerging market segments.”
Commenting on the Q3 performance, Mr. S. Vijayanand, CEO, Amara Raja Batteries Limited said, “We are going forward with strategic investments focused on improving operational efficiencies, cost optimisation and technology upgradation. The planned investments in Solar and lead recycling plants will further strengthen our resolve towards a cleaner environment through a sustainable circular economy and also aid reducing costs and provide long term support to our key raw material procurement.”
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.