Q4 2024 Amara Raja Energy & Mobility Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew by 19% in Q4 FY24, driven by a 19% increase in lead-acid battery revenues and a 30% growth in the new energy business.
- Domestic and international volumes for four-wheeler and two-wheeler batteries saw significant growth, with domestic volumes up 16% and international volumes up 30%.
- The new energy business, including battery packs for telecom and three-wheeler applications, grew by over 30%.
- The company has successfully integrated its plastic component business, contributing to an EBITDA increment of about 0.8%.
- Amara Raja Energy & Mobility Ltd (BOM:500008) has expanded its market leadership in international markets, including Southeast Asia, the Middle East, and Africa.
- Inverter battery segment experienced a decline due to a fire accident at the factory last year.
- One-time expenses of about INR20 crores were incurred for stamp duty payments related to a merger transaction.
- Trading activity in inverter batteries negatively impacted operating margins, with trading revenue percentage increasing from 5% to 10%-11%.
- The company faces challenges in the telecom segment of its industrial business, with growth limited to 6%-7%.
- Lead prices have increased by 10%, which may impact margins if not offset by pricing actions.
Ladies and gentlemen, good day and welcome to the Amara Raja Energy and Mobility Limited Q4 FY24 conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded. And I now hand the conference over to Mr. Jay Kale from Elara Securities Private Limited. Thank you and over to you, sir.
Yes, thank you and good evening, everyone. On behalf of Elara Securities India Private Limited, I welcome you all to the Q4 FY24 earnings conference call of Amara Raja Energy and Mobility Limited. From the management side, we have with us today are Mr. Harshavardhana Gourineni, Executive Director, Automotive and Industrial; Mr. Vikramadithya Gourineni, Executive Director, New Energy Business; Mr. Y Delli Babu, Chief Financial Officer. I would now like to hand over the call to Mr. Delli Babu for his opening remarks. Over to you, sir.
Thank you, Jay.
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