Q4 results: Amara Raja trails Exide for third straight quarter

Market leader has done better on revenue front, margins

The Amara Raja stock corrected over 8 per cent intraday on its weak March quarter performance, and downward revision of margin estimates by brokerages for FY19.  While the stock recovered from its intraday lows, a weak industrial segment as well as any upward movement of lead prices will be overhangs.

A major headwind is margin pressure because of the lead prices, which have hit their highest levels in at least five years in the March quarter.  Raw materials, as a proportion of revenues, are up over 200 basis points (bps) on a sequential basis, and 70 bps over the year-ago quarter.