External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Equity Bottom-Up

Amara Raja Energy & Mobility / Equity Bottom-Up

Amara Raja's senior management team presented (click here for the presentation) their new strategic initiative, laying down future growth drivers in the form of New Energy and Mobility. Key highlights from the meeting: Under this strategy, it is focused on value maximization in its core Lead Acid Battery (LAB) business and is foraying into the New Energy business in the form...<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Amara Raja's senior management team presented (click here for the presentation) their new strategic initiative, laying down future growth drivers in the form of New Energy and Mobility. Key highlights from the meeting: Under this strategy, it is focused on value maximization in its core Lead Acid Battery (LAB) business and is foraying into the New Energy business in the form...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Energy and LAB exports to be the key growth drivers

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The domestic lead acid battery space is set to witness substantial disruption in coming years as India increasingly encourages green mobility. While the transition away from fossil fuel-powered transport is set to be fairly gradual, addressable market for incumbent lead acid ecosystem would shrink, thereby throwing up both an opportunity as well as a challenge to players like ARBL. At present, ARBL has set up a lithium-ion technology research hub with pilot plant facility for cell development and has pack assembly capabilities for industrial and automotive use.<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

The domestic lead acid battery space is set to witness substantial disruption in coming years as India increasingly encourages green mobility. While the transition away from fossil fuel-powered transport is set to be fairly gradual, addressable market for incumbent lead acid ecosystem would shrink, thereby throwing up both an opportunity as well as a challenge to players like ARBL. At present, ARBL has set up a lithium-ion technology research hub with pilot plant facility for cell development and has pack assembly capabilities for industrial and automotive use.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Independent Research Analyst

Mamta Verma

DC India Research

DC India Research LLP (DCIR) is based out of Mumbai, India.

We specialize in providing customized, independent research across listed and unlisted companies in India across equities and credit including sectoral research. Our customers include India focussed PE funds, special situation funds, domestic AMCs, Wealth Advisory& PMS firms, Rating Agencies & Investment Advisors. 

The DCIR board consists of prominent names from the industry as well as CIO’s of Hedge funds.

Amara Raja – P&amp;L Snapshot<table class="table table-striped"><tbody>
<tr>
<td>(Rs. Mn.)</td>
<td>Q4FY17</td>
<td>Q3FY18</td>
<td>Q4FY18</td>
<td>FY17</td>
<td>FY18</td>
</tr>
<tr>
<td>Net Sales</td>
<td>13,445</td>
<td>15,535</td>
<td>15,807</td>
<td>53,172</td>
<td>60,592</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>17.4%</td>
<td>17.1%</td>
<td>17.6%</td>
<td>15.1%</td>
<td>14.0%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>1.3%</td>
<td>8.8%</td>
<td>1.8%</td>
</tr>
<tr>
<td>Raw Material</td>
<td>9,144</td>
<td>10,390</td>
<td>10,866</td>
<td>35,619</td>
<td>41,163</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>68.0%</td>
<td>66.9%</td>
<td>68.7%</td>
<td>67.0%</td>
<td>67.9%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>28.3%</td>
<td>20.4%</td>
<td>18.8%</td>
<td>19.5%</td>
<td>15.6%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>6.0%</td>
<td>10.3%</td>
<td>4.6%</td>
</tr>
<tr>
<td>Employee Costs</td>
<td>705</td>
<td>758</td>
<td>783</td>
<td>2,778</td>
<td>3,090</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>5.2%</td>
<td>4.9%</td>
<td>5.0%</td>
<td>5.2%</td>
<td>5.1%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>13.1%</td>
<td>4.7%</td>
<td>11.0%</td>
<td>14.3%</td>
<td>11.2%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>-2.5%</td>
<td>2.2%</td>
<td>3.3%</td>
</tr>
<tr>
<td>Optg. &amp; Mfg. Exp</td>
<td>1,752</td>
<td>1,972</td>
<td>2,051</td>
<td>6,282</td>
<td>7,507</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>13.0%</td>
<td>12.7%</td>
<td>13.0%</td>
<td>11.8%</td>
<td>12.4%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>-1.2…</td>
</tr>
</tbody></table>

Amara Raja – P&amp;L Snapshot

(Rs. Mn.)
Q4FY17
Q3FY18
Q4FY18
FY17
FY18


Net Sales
13,445
15,535
15,807
53,172
60,592


YoY (%)
17.4%
17.1%
17.6%
15.1%
14.0%


QoQ (%)
1.3%
8.8%
1.8%


Raw Material
9,144
10,390
10,866
35,619
41,163


as % of net sales
68.0%
66.9%
68.7%
67.0%
67.9%


YoY (%)
28.3%
20.4%
18.8%
19.5%
15.6%


QoQ (%)
6.0%
10.3%
4.6%


Employee Costs
705
758
783
2,778
3,090


as % of net sales
5.2%
4.9%
5.0%
5.2%
5.1%


YoY (%)
13.1%
4.7%
11.0%
14.3%
11.2%


QoQ (%)
-2.5%
2.2%
3.3%


Optg. &amp; Mfg. Exp
1,752
1,972
2,051
6,282
7,507


as % of net sales
13.0%
12.7%
13.0%
11.8%
12.4%


YoY (%)
-1.2…



Amara Raja - In-Line, Maintain Buy Investment Thesis

Risk-reward favourable, improving profitability profile, formidable position in Indian storage batteries, debt-free BS &amp; strong mgt. pedigreeQ3-FY18 Performance Summary –<ol>
<li>Topline came in at Rs. 15.5bn in q3-FY18, 17% YoY growth – led by healthy growth in volume across auto OEM and auto after market segments. Industrial segment too witnessed healthy traction in the UPS segment as well as significant improvement in telecom battery business. On sequential basis, topline grew at 9% in q3-FY18.</li>
<li>EBITDA…</li>
</ol>

Risk-reward favourable, improving profitability profile, formidable position in Indian storage batteries, debt-free BS &amp; strong mgt. pedigreeQ3-FY18 Performance Summary –
Topline came in at Rs. 15.5bn in q3-FY18, 17% YoY growth – led by healthy growth in volume across auto OEM and auto after market segments. Industrial segment too witnessed healthy traction in the UPS segment as well as significant improvement in telecom battery business. On sequential basis, topline grew at 9% in q3-FY18.
EBITDA…


Amara Raja: In-Line Q3-Fy18 Results. Maintain Investment Thesis

India

Amara Raja Energy & Mobility Limited manufactures batteries. The Company offers lead-acid batteries for both industrial and automotive applications in the storage battery industry. Amara Raja Energy & Mobility serves automotive, telecom, solar, railways, defense, and UPS sectors worldwide

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Amara Raja Energy & Mobility (AMRJ IN)

New Energy and LAB exports to be the key growth drivers

Amara Raja's senior management team presented (click here for the presentation) their new strategic initiative, laying down future growth drivers...

Motilal Oswal

Amara Raja Batteries Ltd

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general...

ICICI Securities Limited

Amara Raja Batteries Ltd

The domestic lead acid battery space is set to witness substantial disruption in coming years as India increasingly encourages green mobility....

ICICI Securities Limited

Amara Raja - In-Line, Maintain Buy Investment Thesis

Amara Raja – P&L Snapshot Q4-FY18 update: Topline grew 18% YoY led by 30% YoY value growth in automotive batteries; with industrial batteries...

DC India Research

Amara Raja: In-Line Q3-Fy18 Results. Maintain Investment Thesis

Risk-reward favourable, improving profitability profile, formidable position in Indian storage batteries, debt-free BS & strong mgt....

DC India Research

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