Amara Raja Energy & Mobility Ltd. share price target

Amara Raja Batteries Limited undertakes manufacturing of lead-acid storage batteries for industrial and automotive applications in India. It is a company with 26% equity each from the Galla Family and Johnson Controls, the US. Its products are supplied to telecom, railways, power control, solar and uninterruptible power supply (UPS) under industrial battery business, and to automobile original equipment manufacturers (OEMs), replacement market and private label customers under automotive battery business. Under Services, it provides installation, commissioning and maintenance....

Revenue in line margin improved led by price hike Amara Raja Batteries Ltd (ARBL) is India's second largest Lead-acid battery manufacturer. Its segment includes automotive and industrial lead acid batteries, with market leadership in Telecom segment. Q3FY18 revenue grew by 16.9%YoY which was largely driven by automotive segment but industrial segment remained subdued. EBITDA margin improved by 20bpsYoY due to price hikes taken for increase in RM cost and effective cost strategies....

Sector: Auto Parts & Equipment /Mid-Cap | Earnings Update 3QFY18 Background: Amara Raja Batteries Ltd (ARBL) is the second largest automotive battery manufacturer and the largest supplier of industrial storage batteries in India. It is a joint venture between the Galla family and US based Johnson Control (JCI) with 26% each. JCI, the global leader in lead-acid automotive batteries and advanced batteries for start-stop, hybrid and electric vehicles, provides technical support to ARBL. Company's business model is de-risked as it caters to...

Amara Raja Batteries Ltd Q3FY18 results comment Revenue rose by 8.82% to Rs. 1553.46 Cr in Q3FY18 when compared to the previous quarter. Also, it rose by 17.07% when compared with Q3FY17.

Q3FY18 EBITDA beat estimates by 5% on operating leverage benefits led by new plant ramp-up. EBITDA margin at 15.6% (up 20 bps YoY/ down 113 bps QoQ) was robust despite lead price increases. Volume growth remains robust in auto OE, aftermarket and UPS segments (together account for ~75% of revenue).

Amara Raja Batteries' (ARBL) Q3FY18 revenue came in at |1,553 crore (up 16.9% YoY) vs. our expectations of | 1,517 crore. According to management, the automotive segment clocked healthy volume growth across the OEM and aftermarket segments. The industrial battery recorded significant growth in UPS segment while volumes in telecom segment also increased on a YoY basis EBITDA margin expanded 20 bps YoY but contracted 113 bps QoQ to 15.6% vs. our estimate of 16.1%. Its gross margin contracted 174...

EBITDA at Rs2,357 mn (+18.5% YoY, +1.5% QoQ) was in line with our estimate. EBITDA margin improved 18 bps YoY to 15.6% despite rising lead prices. Net profit stood at Rs1,260 mn (+19.7% YoY, +5.7% QoQ). We largely maintain our FY18/19 estimates and introduce FY20 numbers. We maintain our BUY rating on the stock. Key Highlights and Investment Rationale Automotive sales volumes strong: Sales at Rs Rs15.1 bn (+17.1% YoY, 8.8% QoQ) was mainly driven by higher Automotive battery volumes. Also, exports to South East Asia...

Amara Raja's (Amara) Q2FY18 EBTIDA margin beat was led by better-than-expected pricing, product mix and cost initiatives. However, net sales at Rs14.3 bn (+7.1% YoY, -4.7% QoQ) were below our estimate by 9.2%. EBITDA stood at Rs2.4 bn (+3.6% YoY, +23.5% QoQ). EBITDA margin improved 380 bps QoQ to 16.7% despite rising lead prices. We raise our margin estimates for FY18/19 as we expect impact of better pricing,...

Amara Raja Batteries' (ARBL) revenue came in at |1,428 crore (up 7.1% YoY). According to the management, the automotive segment (2-W+ 4-W) showed impressive double digit growth. The Industrial segment was impacted after the telecom space which continues to witness significant growth challenges mainly due to disruption in the space. The demand for batteries in the Telecom sector declined Q2FY18, thereby impacting the overall growth EBITDA margin contracted 55bps YoY, however expanded 380bps...

Amara Raja Batteries Ltd Q2FY18 results comment Revenue fell by 4.67% to Rs. 1427.5 Cr in Q2FY18 when compared to the previous quarter. On the other hand, it grew by 7.08% when compared with Q2FY17.