Amara Raja recommends a dividend of Rs.2.90 per share on equity share of Rs.2/- each for the year 2009-10
Online PR News – 20-May-2010 – – Hyderabad, May 20, 2010: Leading Industrial and Automotive Battery major Amara Raja Batteries Limited, (BSE Code: 500008 & NSE Symbol: AMARAJABAT) has announced a top line growth of 12% for FY 2009-10 recording net revenue of Rs. 14,652 million (excluding other income) compared to Rs. 13,132 million in FY 2008-09. For the same period, the Company achieved a PBT of Rs. 2,546 million compared to Rs. 1227 million in FY2008-09.The Company has earned a net profit of Rs.1,670 million for the FY 2009-10, recording a growth of 107% over FY 2008-09.
During the fourth quarter of the financial year 2009-10, the Company recorded net sales of Rs. 4,325 million, a growth of 32% compared with the corresponding period of previous financial year. The Profit before Tax (PBT) stood at Rs. 560 million as against Rs. 422 million and Profit After Tax (PAT) at Rs. 367 million as against Rs. 280 million.
The board of directors has adopted a dividend policy for distributing up to 15% of the Profits After Tax (PAT) to the shareholders. Accordingly, the board has recommended a dividend of Rs.2.90 (Two Rupees and Ninety Paise) per equity share of Rs.2/- each for this year.
Rs. in Million
Particulars Fourth Quarter Ended Full Year Ended
31-Mar-2010 31-Mar-2009 31-Mar 2010 31-Mar 2009
Gross Sales 5,011 3,795 16,910 15,794
Net Sales (excluding other income) 4,325 3,284 14,652 13,132
PBT 560 422 2,546 1,227
PAT 367 280 1,670 805
The Company’s Industrial Battery Division witnessed double digit growth in sales and volume during the financial year 2010. During the year, the installed capacity of Medium VRLA was enhanced from 1.20 million to 1.80 million units per annum. The enhanced capacity would help the company to consolidate its market position in the growing UPS battery market. The two leading brands viz., PowerstackTM and QuantaTM of the Division have continued to remain the preferred brands in Telecom and UPS segments.
While the telecom segment has witnessed slowdown in network infrastructure roll out due to tower sharing initiatives by the telecom customers, the company has gained significant market share and reinforced its position as market leader in this segment. The company is cautiously optimistic of growth opportunities in telecom sector in the near term and would look for opportunities emerging out of rural network expansion, battery replacement potential and 3G network roll out by providing custom developed solutions.
The Company’s position as preferred vendor to telecom customers is endorsed by the two of the leading telecom players in the country. BSNL - Telecom Quality Assurance Circle, Bangalore has presented the company with the “Best Telecom Equipment Manufacturer” under the category of VRLA battery and Indus towers recognised the company’s products and services by presenting “Quality Excellence” award during 2009-10.
The Company’s Automotive Battery Division revenues grew by 18% over the previous financial year. The growth in sales volume outpaced the industry growth both for automotive and motor cycle batteries. The operating performance of the Division had significantly improved on account of higher capacity utilization. The Board of Directors had approved the further capacity addition both for Automotive and Motorcycle batteries. During the year, the Company launched second variant in the motor cycle batteries with VRLA technology - BETA Series with 48 months warranty in the aftermarket, catalysing the conversion of customer preferences. The Beta series would enhance the product portfolio in addition to the existing variant - ALPHA with 60 months warranty. The company has improved its market share both in OEM and Aftermarket, aided by its focus on channel building, realignment of its product portfolio and brand awareness programmes.
The Company received international accreditation - “Diamond Mark” of quality certification for its automotive batteries from Kenya Bureau of Standards. The Company expanded its Amaron® network to over 200 franchisees and around 19000 retailers and strengthened the presence through 700 PowerZoneTM outlets in semi-urban and rural locations.
The Company was recognised for HR strategy by Employer Branding Institute of India with three awards viz. “Best Employer Award in the category of electronics industry”, “Continuous Innovation in HR Strategy at work” and “Excellence in HR through Technology”.
Mr. Jayadev Galla, Managing Director said: The financial year 2009-10 has been a significant year for us with highest ever profits in the history of the company. The recovery in automotive industry, operational excellence aided by organisational restructuring and strong brands have enabled us to post excellent results. Going forward, we continue to face the challenges of volatility in lead prices and forex rates in managing our performance. While we are upbeat on our prospects in Automotive battery business, we are alive to the challenges posed by the changing landscape in the telecom industry.
Mr. K. Suresh, Chief Financial Officer, said “on the financial front, the Company continues to enjoy comfortable liquidity. With the upgrading in credit rating to “AA/Stable” and P1+ for long term and short term loan facilities respectively by CRISIL, healthy cash position and a very low debt-equity ratio, we are confident of meeting the funding requirements of the expansion programmes contemplated during 2010-11 without any major impact on the interest cost.”
About Amara Raja Batteries Ltd
About Amara Raja Batteries Limited, an Amara Raja- Johnson Controls company with 26% equity from Johnson Controls, 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 Segments (OEM &Replacement), Indian railways and to power, Oil & Gas among other industry segments. Amara Raja manufactures and sells automotive batteries under the Brand Name AMARON which is distributed through a large pan-India sale-service retail network.
Company supplies automotive batteries under OE relationships to Ashok Leyland, General motors, Hindustan Motors, Honda, Mahindra & Mahindra, Maruti, Hyundai and Tata Motors. The company is an exclusive supplier to Daimler Chrysler, Ford and Swaraj Mazda. The company’s Industrial and Automotive batteries are exported to Asia Pacific, Africa and the Middle East.
Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with system engineering and service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is head quartered in Milwaukee, Wisconsin. Its sales for 2009 totalled US $ 28.5 billion.
Some of the statements in this news release that are not historical facts are forward looking statements. These forward looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward looking statements. These risks include, but are not limited to, the level of the market demand for our products, the highly competitive market for the types of the products that we offer, market condition that would cause our customers to reduce their spending for our products, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and otherwise not specifically mentioned herein but those that are common to industry.
Ogilvy Public Relations Worldwide, Chennai
Mobile : 98845 45000
Email : email@example.com