Amara Raja Batteries Ltd.

Business Model
Mid-term: Company continued to seed its-

• Opened two Pitstops, taking the tally of internation

Manufacturers of lead-acid batteries for both
count to 15.
industrial and automotive applications in the Indian
• Introduced PowerZone and JPC (brand owned by Nissan).
storage battery industry.
Revenue from operation of the yeargrew to 6839.46 • Launched
crore fromAmaron
6793.11incrores
new countries.
last year registering a marginal grow
profit for the year grew to 660.82 crores from 483.49 crores in the previous year.
• Launched EFB range of batteriesregistering a growth of 37% . The
in the markets.
year stood at 38.69per share , an increase of 37%.al• Continued
these financial hihglights showing that company is actively
programs like service training, dealer meets con
and plant
expension .the company financial position has shown immense improvment over the year.
The Company's Industrial and Automotive batteries are exported to 32 coun
globe.
Products offered-Powersrack,
KEY CUSTOMER :It suppliesAmaron
its batteries to various customer groups, such as telecom, railways, power control, sola
Sleek terminal batteries, markets, Value
Amaron Volt,
automobile OEMs, replacement Proposition
and private - GLOBAL
label customers. Channel-
Genpro, AMARON QUANTA, PLAYER IN INDUSTRIAL BATTERIES, Set up an entrenched dist
AMARON QUANTA- HWS, ROBUST- ENDURING AND RELIABLE network comprising 30
AMARON QUANTA - HUPS, Amaron - PIONEERED THE VRLA BATTERY plus Amaron and Powe
Brute, Amaron Solar Tubular Battery, TECHNOLOGY IN INDIAN retailers for a pan-India rea
Amaron Solar SMF Battery, Amaron RAILWAYS, RENDERING RELIABLE distribution edge has hel
Quanta S-XEL BATTERY BACKUP FOR SOLAR Company sustain its com
APPLICATIONS. dominance in the afterm
segment.

Revenue model

Reference-Annual Report
Official Website--https://www.amararajabatteries.com/Investors/annual-reports/
Ltd.
Amara Raja Batteries Limited is the technology leader and one of the largest manufacturers of lead-acid batte
automotive applications in the Indian storage battery industry.
- The Company is a leading manufacturer of automotive batteries and home UPS/ Inverter batteries under th
PowerZoneTM, which are distributed through pan-India sales & service retail network. Amara Raja supplies au
relationships to Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, Tata Moto
m: Company continued to seedScooters
its-- India Private Ltd, Royal Enfield, Bajaj Auto Ltd among others.

The Company
ops, taking the tally of international Pitstop is also the leading private label supplier for prominent brands. In India, Amara Raja is the prefe
service providers, telecom equipment manufacturers, the UPS sector (OEM & Replacement), Indian Railways
Motive among other industry segments. Amara Rajas Industrial Battery Division comprises of brands such as
C (brand owned by Nissan). Amaron Sleek, Amaron Brute, Amaron Solar and Amaron Quanta. The Companys products are exported to m
stntries.
year registering a marginal Ocean
growth.Rim.
the net
registering a growth
ies in the markets. of 37% . The EPS for the
wing that company is actively considering
ce training, dealer meets and plant visits.
r the year.
e batteries are exported to 32 countries across the
globe.
ecom, railways, power control, solar, and UPS; and
Channel-
Set up an entrenched distribution
network comprising 30,000-
plus Amaron and PowerZone
retailers for a pan-India reach. This
distribution edge has helped the
Company sustain its competitive
dominance in the aftermarket
segment.
cturers of lead-acid batteries for both industrial and
verter batteries under the brands Amaron and
. Amara Raja supplies automotive batteries under OE
shok Leyland, Tata Motors, Honda Motorcycles &

a, Amara Raja is the preferred supplier to major telecom

ement), Indian Railways and to the Power, Oil & Gas,
prises of brands such as PowerStack, Amaron Volt,
ducts are exported to most of the countries in the Indian
o

1.REVENUE FROM OPERATION

Even though the sales volume increased for both business

verticals (automotive and industrial) revenue from operation
grew by only 1% over the previous year – largely owing to a
drop in the lead price being passed on to customers and
reduction In service income (installation services

2. COST OF MATERIAL CONSUMED

During the year under review, the cost of materials consumed

decreased by about 8% over the previous year primarily
owing to the reduction in the price of lead. This helped in
improving business profitability. The country wide lockdown
of businesses during last week of March’20 in view of Covid-
19

3.EMPLOYEE COST

Addition of new capacities heralded an increase in

people count which together with the annual
increment to the entire team resulted in an increase in
the employee cost by about 12% over the previous
year

4.DEPRECIATION

a non-cash expense, increased from C261.20 crore in

2018-19 to C300.74 crore in 2019-20 – an increase of 15%.
This increase in depreciation and amortisation expense is
due to regular additions in fixed assets in view of capacity
expansion and depreciation on Right-to-use asset on lease
contracts .

EPS

. The Earnings per share (EPS) for the year stood at

C38.69 per share, an increase of 37% compared to
C28.31 per share for the previous year. Y

OVERALL

Revenue from operation of the yeargrew to 6839.46 crore from 6793.11 crores last year registering a m
from 483.49 crores in the previous year. registering a growth of 37% . The EPS for the year stood at 38
showing that company is actively considering expension .the company financial position has shown im
Revenue from operation of the yeargrew to 6839.46 crore from 6793.11 crores last year registering a m
from 483.49 crores in the previous year. registering a growth of 37% . The EPS for the year stood at 38
showing that company is actively considering expension .the company financial position has shown im
 CAPITAL EMPLOYED

Capital employed in the business increased by 7% from C3489.66

crore as on March 31, 2019 to C3746.54 crore as on March 31,
2020. This increase was largely to the addition of business
surplus to the Shareholders’ fund; the equity capital of the
Company remained unchanged at C17.08 crore comprising of
17.08 crore shares with a face value of C1 per share.

2. WORK IN PROGRESS
The balance under Capital Work-inProgress increased
from C233.88 crore as on March 31, 2019 to C732.58
crore as on March 31, 2020. This showcases the capital
expansion projects (to increase the existing production
capacities of plants and for new infrastructure
development) which are at different stages of
implementation

3. NET WROTH
The Company’s financial position has shown immense
improvement over the years. The net worth as at March 31,
2020 is increased by 10 % from 2018-19 to 2019-20 which indicate
good financial health.

4,PBT AND PAT

BOTH PBT and PAT swoing a groth as compared to previous

year,

crores last year registering a marginal growth. the net profit for the year grew to 660.82 crores
e EPS for the year stood at 38.69per share , an increase of 37%.al these financial hihglights
nancial position has shown immense i provment over the year.
crores last year registering a marginal growth. the net profit for the year grew to 660.82 crores
e EPS for the year stood at 38.69per share , an increase of 37%.al these financial hihglights
nancial position has shown immense i provment over the year.
 Amber Enterprises India Ltd.

Business Model
OPERATIONS- AEIL’s products and solutions
create an optimal and healthy indoor climate for PRODUCT AREAS
homes, workplaces, hospitals and transport
systems.

Non- AC Components-
Room Air Conditioner-
Plastic Extrusion,
The Company has 15 manufacturing facilities Window Air Conditioners, Vacuum Forming, Sheet
across 6 states in India, strategically located in Spilit AiR Conditioners Metal Components,
vicinity to its customer clusters, enabling faster (Fix Speed), Split Air
Washing Machine Tub,
turnaround. Conditioners ( Inverter
PCBA

Resources-

Intellectual Capital- State-of the art technology Financial Capital- Natural Capital-
center, product development process,
management and operating systems, logistics Equity and borrowed Renewable sources of
system capital energy

KEY CUSTO
. Our key c
such as Da
Value Offered- It has a diversified portfolio ranging from Room Air
Conditioners (RACs) and its critical relibility components, Air conditioning Channels- Retail Whirlpool.
Branches, Online. share in th
solutions for railways, metros, defence, bus and commercial segments.

REVENUE MODEL

Revenue From Room Air Conditioners (RAC)- Rs.

Revenue From Operations- Rs. 3,963 Crore 2,425 Crore
Revenue rose 17 per cent annually in the past five years to Rs1,652 crore in FY17. Operating profit rose 22 per ce
half of the current fiscal, it reported revenue of Rs941 crore and Rs27 crore of net profit. Operating margin was 7
profit growth has been limited to 9 per cent a year in the past five years due to higher depreciation and interest
expand capacity.
Revenue rose 17 per cent annually in the past five years to Rs1,652 crore in FY17. Operating profit rose 22 per ce
half of the current fiscal, it reported revenue of Rs941 crore and Rs27 crore of net profit. Operating margin was 7
profit growth has been limited to 9 per cent a year in the past five years due to higher depreciation and interest
expand capacity.

SOURCES OF REVENUE
A majority of company’s revenue is derived from the top 10 customers. Sales
from their top 5 and top 10 customers contributed 74.77% and 92.52%,
respectively, of the revenue from operations 
ndia Ltd.

l
-Amber makes room ACs for eight of the top ten AC co
Panasonic, Blue Star, Daikin, and Hitachi.
PRODUCT AREAS - It has a 55 per cent share of the contract AC manufac
AC markets. It has 11 manufacturing facilities across In
-Among its clients are eight of the top 10 air-condition
Panasonic, Voltas and Whirlpool which command arou

AC Components- Heat
Mobility and other Air
Exchangers, Sheet
Conditionings Applications-
Metal Components
Railways Air Conditioners,
Injection Moulding Metro Air Conditioners, Bus
Components Electric
Motors, Copper Tubing, Air Conditioners, Defence &
Telecommunications
PCBA

Social relationship capital-

Human Capital- 2,551 Good and longterm
employees relationships with customers,
suppliers and parterns.

KEY CUSTOMER
. Our key customers include leading RAC brands
such as Daikin, Hitachi, LG, Panasonic, Voltas and
Whirlpool. Our customers command around 75%
share in the Indian RAC market.

Revenue from Components and Mobile Applications

Business- Rs. 1,538 Crore
ting profit rose 22 per cent annually to Rs137 crore. In the first
Operating margin was 7-10 per cent in the past five years. Net
preciation and interest costs, as it invested Rs500 crore to
ting profit rose 22 per cent annually to Rs137 crore. In the first
Operating margin was 7-10 per cent in the past five years. Net
preciation and interest costs, as it invested Rs500 crore to
 eight of the top ten AC companies, and its clients include Voltas,
and Hitachi.
of the contract AC manufacturing and 19 per cent of the total room
acturing facilities across India.
of the top 10 air-conditioner makers, including Daikin, Hitachi, LG,
pool which command around 75 percent of the market.
1.REVENUE FROM OPERATION

Revenues for FY 2019-20 recorded a growth of 38% as

compared to FY 18-19 which was 11% only.which is
showing a good a good growth.

2. PAT

PAT for FY 2019-20 registering a growth of 27% .

3.EPS

Both basic and dilluted EPS increase by 27%

4.TOTAL EXPENSES

TOTAL EXPENSES deacrease by 73%

OVERALL 5 YEAR
Revenue rose 17 per cent annually in the past five years to Rs1,652 crore in FY17. Operating profit rose 22 per ce
the current fiscal, it reported revenue of Rs941 crore and Rs27 crore of net profit. Operating margin was 7-10 pe
has been limited to 9 per cent a year in the past five years due to higher depreciation and interest costs, as it inv
 WORK IN PROGRESS

work in progress deacrease from 7.52 crore to 2.13 crore on

standalone basis

non current liabilities

non current liabilities increase from 141 crore in2019 to 207

crore in 2020 which shows a growth of 47%

PBDIT MARGIN

FY 2020 showing deacrese in PBDITR by 2% which shows a poor

cash flow

NET PROFIT MARGIN

Net profit margin deacrese from 4.22 to 3.92 which shows

companie's ineffective cost structre and its not a good result .

Operating profit rose 22 per cent annually to Rs137 crore. In the first half of
Operating margin was 7-10 per cent in the past five years. Net profit growth
on and interest costs, as it invested Rs500 crore to expand capacity.