Amara Raja Batteries skids after Q4 results

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Amara Raja Batteries tumbled 7.34% to Rs 259.35 at 9:30 IST on BSE after net profit rose 2.22% to Rs 59.60 crore on 19.21% growth in net sales to Rs 801.10 crore in Q4 March 2013 over Q4 March 2012.

The Q4 result was announced after market hours on Monday, 13 May 2013.

Meanwhile, the S&P BSE Sensex was up 28.28 points or 0.14% at 19,719.95.

On BSE, 68,000 shares were traded in the counter as against average daily volume of 43,000 shares in the past two weeks.

The stock hit a high of Rs 270 and low of Rs 252.30 so far during the day.

Amara Raja Batteries said that the net profit in Q4 March 2013 would have been higher but for provision of Rs 7.55 crore towards impairment in value of asset and additional depreciation of Rs 5.15 crore due to revision in estimated useful life of certain assets.

Amara Raja Batteries' net profit surged 33.28% to Rs 286.70 crore on 25.24% growth in net sales to Rs 2961.40 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

Commenting on the company's FY 2013 performance, Mr. Jayadev Galla, Chairman and MD, Amara Raja Batteries said, "We are pleased to report yet another highest ever sales and profit for the company for FY 2013, regardless of supply constraints and slowdown in the automobile industry. Both our industrial and automotive battery units have reported double digit revenue growth and gained market shares. We remain cautiously optimistic of the company's performance in the coming year, against the back drop of continuing uncertainty in macro-economic condition, escalating costs and probable supply constraints. However, our ability to anticipate and perform with distinct approach will help us to sustain the growth momentum in near future and in the long run".

Mr. Ravi Bhamidipati, Executive Director, Amara Raja Batteries said, "We are very pleased to report significant growth in top-line and profits both in industrial and automotive battery businesses. The company is closely watching the cost increase and will try and mitigate the impact through operational efficiencies. We are confident of the growth prospects and hence continue to invest on technology, products, capacities and markets. Recently, we have committed to invest about Rs 760 crore on various capacity enhancement projects, looking at the growth opportunities".

Mr. K. Suresh, CFO, Amara Raja Batteries said, "The company continues to enjoy debt free status and had free cash of over Rs 350 crore at the end of the financial year. The year under review saw the company's market capilization touching Rs 5000 crore with considerable improvement in PE ratio reflecting growing investor confidence. Various capacity enhancement projects, undertaken during the year, are progressing as per schedule and we are well within the approved costs. Continuing debt free status and sound credit rating of the company will help us to leverage, as and when required, at minimal cost".

During the year, the board of directors of the company approved investments for enhancing automotive 4W battery capacity from 5.60 million units to 8.25 million units per annum and 2W battery capacity from 4.80 million units to 8.40 million units per annum through green and brown field projects to meet the growing demand and to improve market share.

Amara Raja Batteries' board of directors at a meeting held on Monday, 13 May 2013, recommended dividend of Rs 2.52 per share for FY 2013. The board has appointed Mr. Jayadev Galla, MD, as Vice Chairman and MD of the company with immediate effect.

Amara Raja Batteries is one of the largest manufacturers of lead acid batteries for both industrial and automotive applications in the Indian storage battery industry.

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