Latest news with #AmaraRaja
Yahoo
4 days ago
- Business
- Yahoo
Amara Raja Energy & Mobility Ltd (BOM:500008) Q4 2025 Earnings Call Highlights: Strong ...
Consolidated Revenue: INR 3,060 crores, 5% growth over the previous year. Lead Acid Battery Revenue: Approximately INR 2,900 crores, 4% growth over the previous year. Four-Wheeler Domestic Aftermarket Volumes: 9% year-on-year growth. Two-Wheeler Volumes: 13% growth during the current quarter. Home Inventory Batteries Growth: Close to 17% growth. Lube Business Revenue: INR 40 crore for the current quarter. New Energy Business Revenue Growth: 35% growth in the current quarter. Operating Margins Impact: Negatively impacted by 1.5% to 2% due to material and power costs. Full Year Revenue Growth: 10% on a consolidated basis. CapEx Spend: Close to INR 100 crores, with significant investment in Lead Acid business and New Energy business. Lead Acid Recycling Plant: Commenced commercial operations during Q4. Warning! GuruFocus has detected 3 Warning Signs with BOM:500008. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amara Raja Energy & Mobility Ltd (BOM:500008) reported a consolidated revenue growth of about 5% in Q4 FY25, with the Lead Acid battery business contributing significantly. The domestic aftermarket for four-wheeler batteries showed a strong growth of 9% year-on-year, with overall volume growth at 15%. The New Energy business experienced a 35% revenue growth in the current quarter, driven by higher supply of ESS batteries to the telecom segment and continued performance of EV batteries. The company has successfully expanded its geographical presence, entering new markets such as the UK, Greece, and the Benelux region. Significant efforts in throughput enhancement have allowed the company to add capacities without incurring additional CapEx, potentially improving return ratios going forward. The company's profitability and operating margins were negatively impacted by increased material costs, particularly alloys like antimony, and higher power costs. There was a slowdown in the overall exports business, with international volumes experiencing a muted demand, leading to a 10% reduction over the previous year. The telecom segment within the Lead Acid business faced challenges, contributing to a muted overall industrial volume growth for the quarter. The New Energy business remained flat in terms of revenue for the year, with some existing customers losing market share. The company faces ongoing cost pressures from power and material costs, which may persist into the next quarters, affecting margins. Q: Could you provide details on the margin targets and the impact of recent price hikes? A: Y. Delli Babu, CFO: The target margin is 14%. We've taken a 2% price increase to mitigate cost pressures from alloys and power costs. The tubular battery plant and lead recycling plant will contribute to margins once fully operational. Current cost pressures may persist for a couple of quarters. Q: Is there a shift in the timeline for the New Energy business, particularly the cell business? A: Vikramadithya Gourineni, Executive Director - New Energy Business: The first giga factory is on track to come online as planned, primarily serving the light electric mobility business. Pricing from China is aggressive, affecting market dynamics. Q: What is the investment plan for the lithium cell project in FY26 and FY27? A: Y. Delli Babu, CFO: We've invested INR 850 crores so far, with INR 350 crores in the current year. For FY26, the New Energy business will require around INR 1,000 crores in CapEx. Q: How are discussions with OEMs progressing regarding local sourcing versus imports for EVs? A: Harshavardhana Gourineni, Executive Director - Automotive and Industrial: OEMs are keen on localized cells, but challenges exist due to the new ecosystem in India. We expect a 15-20% cost penalty initially, which should decrease over time as local supply chains develop. Q: Are there any supply issues with critical materials for LFP batteries from China? A: Y. Delli Babu, CFO: There are no supply constraints, but prices have increased due to export restrictions from China. Q: How will the new lithium-ion plant cater to both auto and industrial segments? A: Y. Delli Babu, CFO: The new plant will supply battery packs to both the automotive and storage segments, similar to our current operations. Q: What are the expected cash flow plans and payback periods for the new CapEx in the New Energy business? A: Y. Delli Babu, CFO: The New Energy business will require INR 2,000-2,500 crores in the first phase, funded by existing cash flows and some leverage. Payback periods are currently high, but will improve with scale. Q: How do you plan to address the competitive dynamics and pricing pressures in the market? A: Y. Delli Babu, CFO: We are monitoring competitive dynamics and may consider further price adjustments. Our focus is on cost-saving measures and maintaining current prices where possible. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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Business Standard
5 days ago
- Business
- Business Standard
This battery manufacturer's shares dropped 5% today; check key details here
Amara Raja share price: Battery manufacturer Amara Raja Energy & Mobility (Amara Raja) share price struggled in Friday's trade, with the scrip dropping as much as 5.43 per cent to an intraday low of ₹1,030 apiece. At 12:20 PM, Amara Raja shares continued to remain under pressure, down 4.80 per cent lower at ₹1,036.90. In comparison, BSE Sensex was trading 0.35 per cent lower at 81,348.21 levels. What led to the drop in the Amara Raja share price today? Amara Raja shares came under pressure today after the company reported a weak performance in the March quarter of financial year 2025 (Q4FY25). Ebitda margin squeezed 270 basis points (bps) to 11.4 per cent in Q4FY25, from 14.1 per cent in Q4FY24. 'The margins are adversely impacted due to a surge in alloy prices and power cost due to regulatory changes in solar power settlements and fuel surcharges,' the company explained, in a statement. Jayadev Galla, chairman and managing director, however, said, 'Amara Raja continues to record consistent growth across product segments. While the Lead Acid Business continues to deliver strong results, we are seeing good traction in allied businesses as well. The New Energy Business witnessed groundbreaking of Giga Factory this year and continues to grow as per our projections. In another few quarters we will have the R&D facility and Customer Qualification Plant (CQP) operational which will add to our capabilities. The teams are committed to deliver excellence even as the global economic scenario continues to remain uncertain.' Amara Raja dividend Amara Raja board of directors has recommended a final dividend of ₹5.20 per equity share (representing 520 per cent) of ₹1 each fully paid up for the financial year 2024-25 (FY25), subject to approval of the shareholders at the 40th Annual General Meeting of the Company. The dividend will be paid within 30 days from the date of declaration of final dividend by the shareholders at the 40th Annual General Meeting, the company revealed, in a statement. 'The above final dividend is in addition to the interim dividend of ₹5.30 per equity share (representing 530 per cent) declared by the board on November 4, 2024,' Amara Raja highlighted. About Amara Raja Amara Raja Energy & Mobility offers a comprehensive portfolio of energy solutions, including energy storage systems, lithium-ion cell manufacturing, EV chargers, Li-ion battery pack assembly, and a wide array of automotive and industrial lubricants. The company is also actively engaged in the exploration of emerging battery chemistries. As one of India's largest manufacturers of energy storage products, Amara Raja serves both industrial and automotive sectors. It is a key supplier to major telecom service providers, telecom equipment manufacturers, the UPS sector (OEM and replacement), Indian Railways, and the Power, Oil & Gas industries. Its prominent industrial battery brands include PowerStack, AmaronVolt, and Quanta. In the automotive segment, the company produces India's leading battery brands Amaron and Powerzone, supported by an extensive pan-India sales and service network. The company holds original equipment (OE) supply relationships with major automobile manufacturers such as Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. Additionally, Amara Raja exports its industrial and automotive batteries to more than 50 countries worldwide, reinforcing its global presence and reputation for quality and reliability. The market capitalisation of Amara Raja is ₹18,961.4 crore, BSE Data showed. The company falls under the BSE 500 index category
Business Upturn
5 days ago
- Business
- Business Upturn
Amara Raja shares drop 4% as EBITDA falls 17% YoY to Rs 340.7 crore in Q4
By Aman Shukla Published on May 30, 2025, 10:04 IST Amara Raja Energy & Mobility Ltd witnessed a decline in its stock price by over 4% following the release of its fourth-quarter financial results. As of 10:02 AM, the shares were trading 4.44% lower at Rs 1,041.00. The company reported a net profit of ₹161.6 crore for the quarter ending March 2025, down 29.7% compared to ₹229.8 crore in the same period last year. Revenue for the quarter stood at ₹3,060 crore, registering a year-on-year increase of 5.2% from ₹2,908 crore. However, the rise in topline figures did not translate into stronger operational performance. The company's EBITDA declined 17% to ₹340.7 crore from ₹410.5 crore reported in the corresponding quarter of the previous year. Profitability metrics were further impacted, with the EBITDA margin narrowing to 11.13% from 14.12% year-on-year. Amara Raja shares opened at ₹1,040.15 today, and, at the time of writing, reached a high of ₹1,056.45 and a low of ₹1,031.90. The stock remains significantly below its 52-week high of ₹1,775.95, but above its 52-week low of ₹832.30. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Reuters
5 days ago
- Automotive
- Reuters
Indian battery maker Amara Raja's quarterly profit falls on higher costs
May 29 (Reuters) - Indian battery maker Amara Raja Energy & Mobility ( opens new tab reported a 27% fall in fourth-quarter profit on Thursday, as higher costs overshadowed steady demand for its services. Analysts said Amara Raja's power and operational costs were higher in the quarter, although the company benefited from steady demand for auto aftermarket services, which includes replacing original equipment batteries. Amara Raja, which counts top automakers including Bajaj Auto ( opens new tab, Hero MotoCorp ( opens new tab and Maruti Suzuki ( opens new tab as its clients, derives almost three-fourth of its revenue from the automotive battery business. India's total vehicle production increased 1.8% in the March quarter, compared with a surge of 20.1% in the same period a year ago. Cost of materials consumed, which makes up more than half of the battery maker's total expenses, grew 10% in the quarter, pushing total expenses up by 10% as well to 27.70 billion Indian rupees ($324.38 million). The company's net profit after tax dropped to 1.67 billion rupees for the quarter ended March 31, from 2.28 billion rupees a year earlier. In February, the company had flagged margin headwinds in the quarter from currency depreciation and fuel purchase agreements. Amara Raja, which also makes industrial batteries for sectors like telecom and railways, reported a 6% increase in revenue from operations to 29.74 billion rupees in the January-March quarter. Rival Exide Industries ( opens new tab posted a smaller-than-expected quarterly profit in late April, hurt by high raw material prices. ($1 = 85.3930 Indian rupees)
