Amara Raja Energy & Mobility (500008) Q4 96/97 earnings summary

Executive summary

• FY1996-97 marked strong expansion: sales crossed Rs1,000m, with production rising to 126,297 batteries and sales volume to 128,631.

• Profit after tax reached Rs152.37m; a 30% dividend was recommended, double the prior year’s 15% rate.

Financial highlights

• Sales were Rs1,010.05m vs Rs679.85m in FY1995-96; profit before tax was Rs210.42m vs Rs143.79m.

• Profit after tax was Rs152.37m vs Rs99.59m; interest expense fell to Rs21.00m from Rs26.24m.

• Net worth was Rs349.81m; net fixed assets were Rs267.48m and net current assets Rs198.69m at 31 March 1997.

Outlook and guidance

• Modernisation and demand-led expansion were planned to raise annual capacity from 180,000 to 275,000 batteries.

• Plastics backward integration was expected to start by end-November 1997; proposed projects were to be financed with low-cost debt and institutional funding.

• Priorities included new product ranges, applications, retail distribution, technology upgrades, productivity, quality and customer support.