Amara Raja Resumes Production

Amara Raja Resumes Production; Committed to Environment and Sustainability

 

Amara Raja Batteries Limited (“The Company” / “ARBL”) has resumed operations at its plants at Nunegundlapalli and Karkambadi at Chittoor District with effect from 8^th May, 2021 after Hon’ble High Court of Andhra Pradesh granted an interim suspension of the orders passed by Andhra Pradesh Pollution Control Board (APPCB).

 

Continuing with its focus on the best-in-class systems and processes for environmental, safety and health practices, the Company will continue to engage closely with APPCB to resolve any potential issues.

 

The Company is confident of meeting all its supply commitments and assures all its stakeholders that the temporary disruption caused during the last few days will not have any material impact on its operations or order book.

 

“We have taken proactive measures to ensure that all our obligations to supply products and services to our customers are met in a timely manner without causing any inconvenience, whatsoever. We are assessing the impact of the short term disruption, and gearing up to sufficiently cater to the demands of all our customers and business partners. We also take this opportunity to thank all our employees, customers, partners, vendors and all other stakeholders who reposed faith in us and we will continue to strive to meet all their expectations,” a Company spokesperson said

 

The Company reiterates its commitment for excellence in complying with all the regulatory requirements. As a responsible corporate citizen, ARBL has always placed highest priority on the environment and to the health and safety of its workforce

Amara Raja Batteries Limited Records

 Amara Raja Batteries Limited Records 20% growth in PBT; Launches/Announces Major Sustainability Initiatives with Solar Power & Lead Recycling Plants

Driven by the revival in demand across all key sectors of the business, Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT), today reported a revenue of Rs 1960.12 crore in Q3 FY21 (Rs 1747.81 crores) and Profit Before Tax (PBT) of Rs 259.90 crores (Rs. 217.36 crores). The Earnings Per Share (EPS) for Q3 FY 21 was at Rs. 11.31

For the quarter ended on December 31, 2020,

                                                                                                                                Rs. in crores

Particulars	Quarter ended
	December 31, 2020	December 31, 2019
Net Revenue from operations	1960.12	1747.81
Profit Before Tax	259.90	217.36

The Board of the Directors also approved payment of an interim dividend of Rs. 5/- per equity share (representing 500%) on face value of Re. 1/- each for the financial year 2020-21.

In the automotive segment, revenue growth is aided by consistent growth in OEM and aftermarket segments and also the Export segment registered robust growth. The Telecom and commercial UPS market segments have also recorded a strong growth in the third quarter. Manufacturing capacities are fully ramped up to the optimum utilisation across all segments.

During the quarter ARBL has inaugurated the “Advanced Lithium Technology Research Hub” with Pilot plant facility for cell development. Amara Raja has developed a wide range of battery packs for e-Mobility and Energy storage applications and has secured approvals from various OE’s and fleet operators for commercial supplies.

To further support the sustainability initiatives, ARBL is setting up a 50MW solar power plant in Chittoor District of Andhra Pradesh at a total outlay of Rs 220 cr. This will further reduce the cost of power and simultaneously bring down the carbon footprint of the company.

As part of the overall lead procurement strategy, ARBL will set up a greenfield lead recycling unit with a capacity of 1 lac tons. This will help the company comply with recycling standards whilst adopting advance technology in the most environmentally friendly manner. The total capital outlay for this project is expected to be Rs 280 cr to be spent over the next 18 months.

Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited, said, “The Indian economy has started showing sharper signs of recovery, with reduction in COVID prevalence and ongoing vaccination drive boosting industry confidence. The rebounding of the economy, with recent lessons, is improving the prospects of various market segments, especially those in which were are operating. The Indian Government has recently announced many initiatives and PLI schemes which will accelerate the growth of E-mobility and renewable energy markets. We are assessing the investment opportunities in advanced and futuristic energy storage technologies to address these emerging market segments.”

Commenting on the Q3 performance, Mr. S. Vijayanand, CEO, Amara Raja Batteries Limited said, “We are going forward with strategic investments focused on improving operational efficiencies, cost optimisation and technology upgradation. The planned investments in Solar and lead recycling plants will further strengthen our resolve towards a cleaner environment through a sustainable circular economy and also aid reducing costs and provide long term support to our key raw material procurement.”