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

Executive summary

• Standalone revenue grew 13% year-over-year, with consolidated revenue of INR 32,631 Mn in Q1 FY25, up 16.7% year-over-year and 12.2% sequentially.

• PAT for Q1 FY25 stood at INR 2,491 Mn, a 25.6% increase year-over-year, with EBITDA margin at 13.4%.

• Lead-acid battery business remains the primary revenue driver, with growing contributions from new energy initiatives.

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

• Unaudited standalone and consolidated financial results for Q1 FY25 were approved and reviewed by the Board and auditors.

Financial highlights

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

• PAT margin improved to 7.6% from 7.1% in Q1 FY24, with EPS at INR 13.61, up 25.6% year-over-year.

• Trading revenue mix increased to 23% in the quarter, up from 12% in the previous quarter, due to higher inverter battery trading.

• Lead Acid segment contributed 96% of total revenue in Q1 FY25.

• Networth increased to INR 67,987 Mn as of FY24.

Outlook and guidance

• Strategic focus on expanding new energy business, including lithium-ion cell manufacturing and EV charging solutions.

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

• Ongoing capex of INR 9,500 crores for Giga Corridor in Telangana to support future growth.

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

• The company aims to strengthen its market position and capitalize on new opportunities in the energy and mobility sector following its rebranding.