Amara Raja Energy & Mobility (500008) Q4 98/99 earnings summary

Executive summary

• FY98-99 delivered sales growth of 29% and net profit growth of 40% YoY, alongside higher production and expansion of installed capacity.

• Automotive battery operations commenced with exclusive supplies to Ford, General Motors and Mercedes-Benz; industrial batteries retained market leadership despite increased competition.

Financial highlights

• Sales were Rs 1,865.46 million versus Rs 1,443.82 million in FY97-98; profit after tax was Rs 438.94 million versus Rs 313.16 million.

• Profit before tax was Rs 573.02 million, up from Rs 405.16 million; other income increased to Rs 42.38 million from Rs 14.96 million.

• Production rose to 239,604 batteries from 195,094; sales volume reached 240,527 units from 195,832.

Outlook and guidance

• FY99-00 expansion plans call for Rs 15.80 crore in the Industrial Division and Rs 21.30 crore in Automotive, funded through internal accruals.

• Automotive project target: manufacturing capacity of 1 million batteries by September 2000, with an initial outlay of Rs 25 crore; project reported on schedule.

• Industrial outlook targets continued leadership, while automotive plans include developing replacement-market ranges and securing additional OEM business with Johnson Controls support.