Amara Raja Energy & Mobility Ltd. share price target

Amara Raja's (AMRJ) Q3 EBITDA was 11% below our/consensus estimates on weak volumes (industrial) coupled with higher lead prices (+30% YoY; +15% QoQ). Revenue growth (+10% YoY) was driven by 17% growth in automotive (partly aided by a 5% value growth) and flattish industrial revenues. EBITDA margi..

Revenue fell by 1.28% to Rs. 1327.93 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it grew by 9.57% when compared with Q3FY16

The 9.6% growth in ARBL's Q3FY17 revenue indicates that note ban has not severely impacted its revenues. The sharp rise in the lead prices (25% yoy in Q3FY17 and 28% yoy in January-2017) however concerns us in the near term and we expect company to pass these prices to its customers. In view of near tern slower growth due to demonetisatio..

ICICI Securities Ltd | Retail Equity Research Amara Raja Batteries' (ARBL) revenues were at | 1,328 crore (up 9.6% YoY) vs. our estimate of | 1,387 crore. According to the management, the demonetisation of currency impacted the 2-W (OEM) + replacement) and 4-W (OEM) segments though it managed its growth trajectory in the replacement segment. Overall, ARBL increased its market share in both 2-W & 4-W replacement space. Despite challenging & competitive market conditions, ARBL reported...

ARBL reported Q3FY17 results with a revenue (net of excise duty) of Rs.13.3 bn, growth of 8.4% / -1.3% YoY / QoQ respectively led by lower traction in OEM and replacement sales due to impact of demonetization of high currency notes. EBITDA stood at Rs. 2.0 bn vs Rs.2.3 bn last year and margin contracted by ~331bps to 15.4% from 18.7% last year. Reported PAT is Rs.1.1bn with de-growth of 17.5%/ 17.6% and margin...

Q3FY17 Results: Amara Raja Batteries growth momentum slowed down in this quarter, with a 9.6% YoY revenue growth (1% below est. of 10.5%). Gross margins contracted 336bps YoY to 34.9%, in line with estimates as lead prices surged during the quarter, with average prices up ~16% YoY (assuming 2-month lag, LME prices in INR terms). Staff costs rose 30bps YoY, while other expenses fell 10bps to 14.1% (est. 13.4%), leading to an overall YoY EBITDA margin contraction of 362bps to 15.4% (Est. 16.4%).The increased capacities have resulted in higher depreciation ( up 32% YoY), contributing to a fall in PAT of 18%. Additionally, other income rose 17%, while the tax rate rose 48bps YoY and 359bps QoQ to...

Amara Raja Batteries (AMRJ) delivered subdued Q3FY17 performance. It was below our estimates on all parameters. Despite healthy top line growth, profit declined due to competitive pressure during the quarter. Its Revenue/EBIDTA/PAT grew by 9.6%/-11.3%/-17.9% YoY, declined 1.3%/11.2%/17.3% QoQ to Rs13.3bn/Rs2.0bn/Rs.1.12bn, vis--vis our estimate of Rs13.16bn/Rs2.19bn/Rs.1.27bn respectively in Q3FY17. Management cited demonetization as a key reason behind this performance.

We believe that ARBL is likely to continue gaining market share in the automotive battery segment. The strategy followed by automotive OEMs of sourcing from multiple vendors as against having a single vendor is likely to benefit ARBL. Further, with the company's strengthening distribution network in the Western and Eastern markets, we exp..

Q2FY17 Results: Amara Raja Batteries continued its robust topline growth trajectory, with a 17% revenue growth (beat of 1%), building on its 17% Q1 growth. QoQ growth was at 2%. Gross margins expanded 13bps to 35.7% (est. 34.9%).Other expenses rose 31bps, leading to an overall YoY EBITDA margin contraction of 30bps to 17.1% (est. 16.8%). Higher depreciation (on current capacity expansion) (up 33% YoY), limited PAT growth to 10%. Due to IND-AS, Q2FY16 results were restated, with the prior year quarter's revenues 1% lower and margins 21bps higher. Impressive performance given industry headwinds: Growth of 17% was impressive given that 1) OEM sales (growing strongly) account for just ~14-16% of sales for the company 2) The...

ICICI Securities Ltd | Retail Equity Research Amara Raja Batteries' (ARBL) revenues grew 16.9% YoY to | 1345 crore vs. our expectation of | 1317 crore. Its automotive aftermarket segment registered double digit growth, thereby increasing its market share in the space. OEM (2-W & 4-W) production also witnessed good growth, thereby aiding higher sales of batteries. Further, despite the challenging & competitive environment, its industrial battery segment registered double digit volume growth...