Amara Raja Energy & Mobility (500008) Q4 04/05 earnings summary

Executive summary

• FY05 gross sales crossed Rs. 2.68bn, up 34% YoY; growth came from Industrial and Automotive battery volumes.

• Profit after tax rose to Rs. 86.9m from Rs. 13.9m; high Lead prices continued to pressure margins.

Financial highlights

• Gross sales were Rs. 2,685.4m vs Rs. 1,999.2m; net sales were Rs. 2,368.1m vs Rs. 1,759.0m.

• PBT was Rs. 135.8m vs Rs. 11.5m; PAT was Rs. 86.9m vs Rs. 13.9m.

• Production rose to 1.231m batteries from 944,632; sales volume reached 1.223m from 947,658.

• A Rs. 2 per share dividend was recommended, absorbing Rs. 25.97m including dividend tax.

Outlook and guidance

• Medium-term growth was expected across Industrial and Automotive batteries; export markets were set for continued expansion.

• Telecom subscriber targets of 250m by 2007 and greater UPS demand from Banking and IT were expected to support Industrial battery demand.

• Automotive battery capacity expansion to 2.4m units annually was expected to finish by end-Dec 2005; retailer count target was 12,000 by Mar 2006.

• FY06 Automotive export volumes were expected to rise further; Industrial exports were also a development focus.