Amara Raja Q3 Review - Margins Weak; Valuations Fair: IDBI Capital
(Source: Company website)

Amara Raja Q3 Review - Margins Weak; Valuations Fair: IDBI Capital

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Amara Raja Batteries Ltd.’s net sales was 7% ahead of our forecast; however, its Ebitda margin was 158 basis points lower than our estimate.

Its sales increased by 12% YoY to Rs 19.6 billion led by growth in original equipment manufacturer, aftermarket and exports segments.

However, gross margin contracted 164bps YoY to 34% and hence, Ebitda increased only 8% YoY to Rs 3,069 million.

Sharp jump in other income (up 175% YoY to Rs 325 million) resulted in stronger growth in net profit to Rs 1,937 million (up 18% YoY).

Click on the attachment to read the full report:

IDBI Capital Amara Raja Batteries Q3FY21 Result Update.pdf

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