Mid-Cap Auto Ancillary Company Reports 45% Jump In Profit Before Tax, Recommends 320% Dividend

Leading manufacturer of automotive batteries, Amara Raja Batteries posted its Q4 of FY23 results on Tuesday. The mid-cap auto ancillary company reported a profit before tax (PBT) of Rs. 947.57 cr for the financial year 2022-23. It was up by 37.37% over Rs 689.80 crore reported last year. The results of the company and the dividend declared were announced through multiple securities exchange filings.

As per, one of the press releases of Amara Raja Batteries, it posted a revenue of Rs 10,385.91 crore for FY23 as compared to Rs.8,695.82 crore during FY22. Also, the earnings per share (EPS) for FY23 was at Rs.40.65.

For Q4FY23, the company reported a revenue of Rs 2,429.21 crore as against Rs 2,180.70 crore in Q4FY22. The profit before tax (PBT) of Rs 191.52 crore grew by 44.55% against Rs 132.49 crore posted a year ago.

Amara Raja Batteries Ltd recorded impressive revenue growth in the last financial year, on the back of strong volume growth in both automotive and industrial applications across all customer segments as per the company statement.

Jayadev Galla, Chairman & Managing Director, of Amara Raja Batteries Limited, said, "This is a testament to our customers' trust in the quality and reliability of our products. As we embark on the next phase of our Energy & Mobility strategy, our continued commitment to R&D that delivers superior products in lead-acid as well as lithium will be crucial."

The company shared that it experienced an increase in market share for both OEM and aftermarket segments in automotive batteries. Additionally, there has been strong growth in the telecom and data center segment based on new digital platforms for enhanced customer support. Even the lithium-ion battery packs and chargers business saw 3X growth in the fiscal.

Commenting about the performance, Harshavardhana Gourineni, executive director -of automotive & industrial batteries, mentioned, "We observed robust and sustained growth in both industrial and automotive applications. We've always been the market leader in 2W and now we are at the top even in 4W segment. We are currently in the process of launching a new brand of batteries in the domestic market and expanding our international operations as well."

Further giving slight insight about the future, Vikramadithya Gourineni, Executive Director - of New Energy Business, stated, "With the commencement of work on the ambitious Amara Raja Giga Corridor project we are making rapid progress towards our goal of indigenous manufacture of Li-ion cells. Meanwhile, our battery packs and chargers continue to steadily prove themselves with a wide array of customers."

Dividend Details
The Board of Directors recommended a final dividend of Rs 3.20 per equity share (representing 320%) on a face value of Rs 1 each for the financial year 2022-23. The company has set Friday, July 28, 2023, as the record date for a final dividend.

The Register of Members and Share Transfer Books of the Company will remain closed from Saturday, July 29, 2023, to Friday, August 04, 2023 (both days inclusive) for the Annual General Meeting(AGM) and Dividend. The AGM of the company is scheduled to be held on Saturday, August 12, 2023.

Scrip Movement
The latest stock price of Amara Raja Batteries closed marginally higher by 0.09% to Rs 634.50. In the last one year, the share price has rallied by 29.65% while in the last three years, it moved up by 4.75%.