Amara Raja Batteries Ltd

About

Amara Raja Batteries Limited [1] (ARBL), the flagship company of the Amara Raja Group, is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

ARBL has prestigious original equipment manufacturers as its clients. The Company's Industrial and Automotive batteries are exported to 32 countries across the globe.

In India, Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments.

Termination of Shareholders Agreement (tie up) with Johnson Control [2]

Key Points

Dominant player in UPS, Tower segment & Solar energy storage
It has regained dominance in battery supply to India's largest tower company. Company consolidated its position for UPS applications Industry and it is riding on growth in IT, ITes, Data centers. Further it remains to be most preferred battery supplier for UPS applications.

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  • Market Cap 12,984 Cr.
  • Current Price 760
  • High / Low 1,026 / 665
  • Stock P/E 18.3
  • Book Value 246
  • Dividend Yield 1.45 %
  • ROCE 21.6 %
  • ROE 16.2 %
  • Face Value 1.00

Pros

  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 27.50%

Cons

  • The company has delivered a poor sales growth of 9.14% over past five years.
  • Promoter holding has decreased over last 3 years: -24.00%
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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
1,753 1,695 1,567 1,815 1,695 1,748 1,581 1,151 1,936 1,960 2,103 1,886
1,516 1,442 1,325 1,536 1,403 1,464 1,338 999 1,595 1,654 1,786 1,636
Operating Profit 237 253 242 279 292 284 243 152 340 306 316 250
OPM % 14% 15% 15% 15% 17% 16% 15% 13% 18% 16% 15% 13%
Other Income 14 12 6 10 18 13 14 9 11 35 32 17
Interest 2 2 2 3 3 3 3 3 2 3 3 3
Depreciation 64 66 68 73 75 76 76 75 78 79 87 96
Profit before tax 185 198 178 213 232 217 178 84 271 260 259 167
Tax % 35% 34% 33% 34% 6% 24% 23% 25% 26% 26% 27% 26%
Net Profit 120 131 119 141 219 164 137 63 201 193 189 124
EPS in Rs 7.04 7.66 6.99 8.25 12.81 9.63 8.00 3.67 11.79 11.31 11.09 7.26

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
1,464 1,761 2,364 2,959 3,437 4,211 4,618 5,317 6,059 6,793 6,839 7,150 7,884
1,188 1,504 2,025 2,508 2,876 3,507 3,793 4,465 5,174 5,838 5,741 6,033 6,671
Operating Profit 276 257 340 451 560 704 825 853 885 955 1,099 1,117 1,213
OPM % 19% 15% 14% 15% 16% 17% 18% 16% 15% 14% 16% 16% 15%
Other Income 29 8 28 37 42 41 44 47 65 43 55 86 95
Interest 8 3 2 0 1 0 6 6 5 7 12 11 11
Depreciation 43 42 46 66 65 134 141 191 230 261 301 319 341
Profit before tax 255 220 319 422 537 610 723 702 714 730 841 873 957
Tax % 34% 33% 33% 32% 32% 33% 32% 32% 34% 34% 21% 26%
Net Profit 167 148 215 287 367 411 492 478 471 483 661 647 708
EPS in Rs 9.78 8.67 12.59 16.79 21.51 24.05 28.78 28.01 27.59 28.31 38.69 37.87 41.45
Dividend Payout % 15% 27% 15% 15% 15% 15% 15% 15% 15% 25% 28% 29%
Compounded Sales Growth
10 Years:15%
5 Years:9%
3 Years:6%
TTM:28%
Compounded Profit Growth
10 Years:16%
5 Years:6%
3 Years:11%
TTM:22%
Stock Price CAGR
10 Years:22%
5 Years:-6%
3 Years:1%
1 Year:5%
Return on Equity
10 Years:20%
5 Years:17%
3 Years:17%
Last Year:16%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
17 17 17 17 17 17 17 17 17 17 17 17
Reserves 527 629 806 1,043 1,346 1,682 2,099 2,576 2,920 3,318 3,639 4,193
Borrowings 91 100 86 88 86 76 74 72 64 58 84 92
341 370 443 623 535 611 761 919 1,168 1,102 1,261 1,494
Total Liabilities 976 1,116 1,352 1,770 1,984 2,386 2,951 3,585 4,169 4,496 5,001 5,797
306 315 355 359 623 944 1,352 1,492 1,703 1,813 1,829 2,455
CWIP 23 38 32 103 145 86 123 240 226 315 827 399
Investments 16 16 16 16 16 16 20 147 35 20 156 281
631 747 949 1,293 1,200 1,340 1,456 1,706 2,204 2,348 2,188 2,662
Total Assets 976 1,116 1,352 1,770 1,984 2,386 2,951 3,585 4,169 4,496 5,001 5,797

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
214 86 298 335 279 395 555 553 322 541 1,177 802
-18 -61 -73 -119 -342 -294 -387 -529 -236 -448 -831 -616
-204 -42 -42 -35 -53 -75 -164 -2 -138 -92 -364 -122
Net Cash Flow -8 -17 184 181 -117 26 4 22 -52 1 -18 64

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 60 63 49 47 48 48 47 39 47 41 34 40
Inventory Days 90 90 61 54 54 55 75 85 93 83 94 111
Days Payable 57 33 20 25 20 34 44 44 53 40 50 57
Cash Conversion Cycle 94 120 90 76 81 69 78 81 88 85 77 93
Working Capital Days 62 72 47 35 40 45 49 48 63 67 49 55
ROCE % 38% 32% 39% 42% 42% 38% 36% 29% 25% 23% 23% 22%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
52.06 52.06 28.06 28.06 28.06 28.06 28.06 28.06 28.06 28.06 28.06 28.06
20.65 19.38 17.31 20.07 21.24 20.91 19.01 18.63 20.91 21.34 22.10 20.82
9.21 10.32 13.39 11.58 10.64 11.14 13.27 14.23 14.53 12.64 15.24 14.52
0.34 0.37 0.47 0.47 0.47 0.47 0.47 0.47 0.00 0.00 0.00 0.00
17.75 17.87 40.77 39.82 39.59 39.42 39.19 38.61 36.50 37.96 34.60 36.59

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