Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE Code: 500008 & NSE Code: AMARAJABAT) today reported net sales (excluding other income) of Rs 2,552 crore for the nine months ended December 31, 2013 as agaist Rs 2,160 crore clocked in the year ago period, thus registering 18 percent growth. according to a company statement, the Profit Before Tax (PBT) stood at Rs.416 crore in comparision with Rs 330 crore logged in the corresponding year of 2012, up 26 percent growth.
The performance of the Company for the quarter and nine months ended December 31, 2013 are as under:
The Automotive battery business reported double digit growth in revenue, aided by strong volume expansion in two-wheeler batteries and marginal volume growth in four-wheeler batteries. While the OEM demand continued to be sluggish, an early sign of demand slowdown in four-wheeler replacement was visible in Q3. The trading volume in home UPS business suffered due to unfavorable season. The ongoing capacity expansions in two-wheeler and four-wheeler battery product lines are progressing as envisaged.
The Industrial battery business reported flat volume for the quarter compared to previous year, due to capacity constraints and subdued demand for UPS batteries. However the revenues grew in double digit owing to inflation and better product mix. The firm continues to focus on enhancing the quality of business through various initiatives in the market place. In the UPS segment, the company expanded the Quanta® product range with the introduction of 12V-120 Ah and 12V-150 Ah batteries. Now, the Company has widest product range for optimal battery sizing by the UPS OEM’s and other customers.
The company has commissioned on January 22, 2014 the modern and fully integrated MVRLA battery plant in a new location at Chittoor, Andhra Pradesh. The new plant was inaugurated by Brian Kesseler, President – Power Solutions, Johnson Controls Inc, in the presence of Dr.Ramachandra N. Galla, Chairman and Jayadev Galla, Vice Chairman and Managing Director, other directors on the board and the leadership team of Amara Raja Batteries. The trial runs and product validation processes are under way. The plant is expected to commence supplies in full scale from March 2014 to support the growth momentum.
Commenting on the Q3 performance, Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries said: “It is heartening to deliver a consistent good performance despite challenging economy, volatile rupee and sluggish demand in the automotive OEM and UPS sectors. However, an early sign of slowdown in growth rate of four-wheeler automotive replacement demand requires close watch and innovative approach to sustain double digit volume growth. The successful completion of MVRLA capacity expansion and other ongoing capacity expansions in various product lines, will provide enough momentum to the growth in line with our strategic plan for the five years period leading to FY19”.
Amara Raja Batteries Limited, a company with 26 percent equity each from Galla Family and Johnson Controls Inc of US, is the technology leader and is one of the largest manufacturers of lead acid batteries for both industrial and automotive applications in the Indian storage battery industry. In India, Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM and aftermarket), Indian Railways and to Power, Oil and Gas among other industry segments. Amara Raja is a leading manufacturer of automotive batteries under the brands – Amaron® and Powerzone®, which are distributed through a large pan – India sales and service retail network.
The company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The Company’s Industrial and Automotive batteries are exported to Asia Pacific, Africa and Middle East.Johnson Controls is a global leader in Power Solutions, Automotive Seating Systems and Building Efficiency. Johnson Controls provides batteries for automobiles and hybrid electric vehicles, along with system engineering and service expertise. The Company provides innovative automotive interiors that help driving more comfortable, safe and enjoyable. For buildings it offers products and services that optimize energy use and improve comfort and security. Johnson Controls (NYSE: JCI), founded in 1885, is head quartered in Milwaukee, Wisconsin. Its net sales for the year ended September 30, 2013 is $ 42.70 billion.