Amara Raja Energy & Mobility (500008) Q4 05/06 earnings summary

Executive summary

• FY06 was a record year: gross sales rose 66% to Rs. 4,458.3 million; PBT reached Rs. 373.46 million and PAT Rs. 238.47 million.

• Automotive and industrial battery volumes grew 72% and 73%, respectively, as capacity expansion and market-share gains supported growth.

Financial highlights

• Gross sales increased 66% YoY to Rs. 4,458.30 million; net sales were Rs. 3,918.56 million after excise duty.

• PBT rose to Rs. 373.46 million from Rs. 135.81 million; PAT increased to Rs. 238.47 million from Rs. 86.90 million.

• EPS was Rs. 20.94 versus Rs. 7.83; recommended dividend was Rs. 2.50 per equity share, with Rs. 32.46 million including dividend tax.

• Rs. 23.85 million was proposed for transfer to General Reserve; surplus carried forward was Rs. 749.03 million.

Outlook and guidance

• FY07 plans target automotive capacity of 3.6 million units per year and an approximately 50% increase in industrial battery capacity.

• Medium-term growth priorities include telecom and UPS demand, power control products, automotive OE platforms, aftermarket network growth and exports.

• Future investment proposals may require term borrowings; current investment was funded through internal accruals, with liquidity described as comfortable.