Amara Raja Energy & Mobility (500008) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue reached INR 3,250 crore in Q2 FY25, up 10% year-over-year, with lead-acid battery business contributing INR 2,100 crore and growing 12% year-over-year.

• Four-wheeler battery volumes grew strongly in aftermarket (15%) and exports (20%), while OEM volumes declined 3% year-over-year.

• Two-wheeler battery volumes increased 17% year-over-year, with similar growth in both OEM and aftermarket segments.

• Unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2024, were approved and reviewed by the Board and auditors, with no material misstatements found.

• Name change in 2023 to reflect a broader vision in energy and mobility solutions.

Financial highlights

• Q2 FY25 consolidated revenue: INR 3,250.73 crore, up from INR 2,959.72 crore in Q2 FY24 (restated).

• Q2 FY25 consolidated EBITDA: INR 432.7 crore (13.3% margin); PAT: INR 235.61 crore (7.2% margin).

• Margin dilution of 5.5% on standalone basis, mainly due to higher trading revenue and input cost pressures.

• Lubes product revenue crossed INR 30 crore for the quarter.

• Interim dividend of ₹5.30 per equity share declared for FY 2024-25, with record date set as November 14, 2024.

Outlook and guidance

• Margin recovery expected as trading revenue reduces with commencement of own tubular battery manufacturing by fiscal year-end.

• Board approved further capital infusion in subsidiaries to support expansion in advanced cell technologies and gigafactories.

• Tubular battery plant to commence commercial production by February or March; insurance claims of INR 200 crore received, with another INR 150 crore expected.

• New energy business expected to rebound in coming quarters as product upgrades and OEM demand normalize.

• Significant market share gain opportunity in new energy business, driven by India's electrification demand expected to reach 150 GWh by 2030.