AMARA RAJA BATTERIES
Amara Raja Batteries is the flagship company of Amara Raja Group, which is an Indian Multinational conglomerate company headquartered in Tirupati, India. It was founded by Ramachanda Naidu Galla in the year 1985. It is a technology leader and is one of the largest manufactures of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. Amara Raja Batteries was named on Asia’s best under a billion 2010 list of companies compiled by Forbes magazine. The products of this company are currently exported to more than 32 countries across the globe.
The company is the most preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. They have been awarded as India’s most promising company by CNBC, TV18, IBLA. It has been surveyed that every 2nd telecom power in India is powered by Amara Raja Batteries. Other than providing its offerings to big companies, the have also powered one of the seven wonders of the world: Taj Mahal. The company has expanded its business heavily outside of India as well and it has been found that every 3rd car in Singapore is powered by the company’s batteries.
They have a number of sub brands under their umbrella which includes: Amaron, Amaron Quanta, Genpro, Amaron Volt, Amaron Brute, Amaron Sleek, Powerstack, and Amaron Quanta. Recently, the High Court has suspended PCB’s closure order to their battery plant in Chittoor district. They have also received closure orders from APPCB for their Andhra plants. The company has set up a new tech hub at Tirupathi which works on lithium-ion-cells. They have started operating with low debt ratio, with zero promoter pledge which has shown high potential growth in the industry. They are also planning to diversify their energy sources, in addition to its target to providing 24*7 electricity supply to every citizen, by making large increments in renewable energy generation capacities.
The shareholding pattern of the company is: Promoters having (28.06% shares), Foreign Institutions having (21.34% shares), Banks Mutual funds having (5.68% shares), General Public having (8.62% shares), Financial Institutions having (6.78% shares) and others having (29.34% shares).
As per the quarter 4 results, Amara Raja’s revenue shows a 33% jump in Revenue from operation from last year. The revenue of the company stood at Rs. 2102 cr. against the Rs. 1581 last year.
, the Net profit of the company raises 38% to Rs. 189 Cr. from Rs. 137 Cr. last year. The company’s revenue and net profit are declining QoQ. Its net profit fell for the 2nd time Straight QoQ. The EPS also showed a jump of 38%. Q4’s EPS stood at Rs. 11.09. The company also recorded a 15% increase in its assets compared to the previous year. The board of the company recommended a dividend of Rs. 6 Per share (600% of the face value)
Despite a little fall in Profits compared to last quarter, the results of Amara Raja are satisfactory since its maintaining an increasing revenue from operations.
