Amara Raja Energy & Mobility (500008) Q1 24/25 earnings summary

Executive summary

• Standalone revenue grew 13% year-over-year, with lead-acid revenue up 15% after adjusting for lithium business demerger.

• Q1 FY25 consolidated revenue reached INR 32,631 Mn, up 16.7% year-over-year and 12.2% sequentially.

• PAT for Q1 FY25 was INR 2,491 Mn, a 25.6% increase year-over-year and 8.4% sequentially.

• Strong volume growth in domestic and international automotive segments, especially in North America.

• The company completed a name change to reflect its broader focus on energy and mobility, effective September 27, 2023.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹3,263.05 crore, up from ₹2,796.27 crore in Q1 FY24 (restated).

• EBITDA for Q1 FY25 stood at INR 4,372 Mn, with a margin of 13.4%.

• PAT for Q1 FY25 was INR 2,491 Mn, with EPS of INR 13.61.

• Lead Acid battery revenue for Q1 FY25: INR 31,373 Mn; other businesses: INR 1,258 Mn.

• EBITDA margin slightly decreased sequentially by 71 bps but improved 26 bps year-over-year.

Outlook and guidance

• Export business targeted to grow at a CAGR of 15% over the next 2-3 years, with expansion into over 55-60 countries.

• New energy business expected to be a key growth engine, with India's electrification demand projected at 150 GWh by 2030.

• Ongoing capex of INR 9,500 crores for Giga Corridor in Telangana to expand lithium cell and pack manufacturing.

• NMC cell commercial production expected by end FY26 or Q1 FY27; LFP cell production by end of 2027.

• Focus on expanding global presence and strengthening supply chain, especially in North America and Europe.