Amara Raja Batteries Q1 Review - Results In Line, Recovery Likely From H2: IDBI Capital
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IDBI Capital Report
Amara Raja Batteries Ltd.’s Q1 FY22 result was broadly in line with our expectations.
Amara Raja’s sales increased by 64% YoY to Rs 19 billion as automotive and industrial sales rebounded strongly; even exports and original equipment manufacturers sales witnessed sharp increase.
Ebitda jumped 64% YoY to Rs 2,500 million, although Ebitda margin remained flat YoY but fell 179 basis points on QoQ to 13.3% on rising prices of raw materials (mainly lead).
The company’s net profit nearly doubled YoY to Rs 1,241 million.
We broadly maintain our FY22/FY23 sales forecasts.
However, we lower our FY22-FY23 Ebitda margin estimates by ~100 bps to account for higher price of raw materials.
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