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### Amara Raja Batteries: Consolidated Financial Results for Q1 FY25
#### Sales and Profit Growth
- **Revenue from Operations**: ₹3,263.05 crores, an increase from ₹2,796.27 crores in Q1 FY24, marking a growth of approximately 16.7%.
- **Net Profit**: ₹249.12 crores, up from ₹198.31 crores in Q1 FY24, representing a growth of 25.6%.
#### Segmental Growth
- **Lead Acid Batteries and Allied Products**:
- Revenue: ₹3,137.30 crores in Q1 FY25 vs. ₹2,688.55 crores in Q1 FY24.
- Segment Results: ₹306.23 crores in Q1 FY25 vs. ₹246.12 crores in Q1 FY24.
- **Others (New Energy Business)**:
- Revenue: ₹125.75 crores in Q1 FY25 vs. ₹107.72 crores in Q1 FY24.
- Segment Results: ₹5.81 crores in Q1 FY25 vs. ₹4.20 crores in Q1 FY24.
#### Profitability Ratios Comparison
- **EBITDA Margin**: 14.17% in Q1 FY25, up from 13.78% in Q1 FY24.
- **Net Profit Margin**: 7.63% in Q1 FY25, up from 7.08% in Q1 FY24.
- **Return on Capital Employed (ROCE)**: Approximately 19% as of FY24 end.
#### Solvency (Leverage) Ratios
- **Debt to Equity Ratio**: Minimal debt in the books, reflecting a strong balance sheet.
#### Earnings Ratios
- **Earnings Per Share (EPS)**: ₹13.61 in Q1 FY25 vs. ₹10.84 in Q1 FY24.
### About ARE&M
Amara Raja Energy & Mobility Limited (formerly Amara Raja Batteries Limited) is a leading manufacturer of lead-acid batteries in India, with a strong presence in both automotive and industrial battery segments. The company's recent name change signifies its broader vision to lead India’s energy transition and mobility space by providing comprehensive energy solutions.
### Industry Overview
The battery industry is evolving with increasing demand for energy storage solutions and electric mobility. The transition towards renewable energy sources and the need for efficient energy storage systems are driving growth in this sector.
### Peer Group Comparison
- **Exide Industries**: Another major player in the lead-acid battery segment, with similar revenue growth trends but slightly lower EBITDA margins compared to ARE&M.
- **HBL Power Systems**: Focuses on specialized batteries for industrial applications, with smaller market share but strong niche presence.
#### Financial Comparison
- **Revenue Growth**: ARE&M shows consistent growth, outperforming some peers.
- **Profit Margins**: ARE&M maintains healthy profit margins, competitive with Exide and higher than HBL Power Systems.
- **Debt Levels**: ARE&M’s minimal debt levels provide a stronger financial position compared to peers.
### Historical Growth
- **10-Year Revenue CAGR**: Approximately 13%.
- **EBITDA and Profit Growth**: Consistent year-on-year growth, reflecting strong operational efficiency and market demand.
### Future Outlook
ARE&M’s focus on expanding its new energy business, including setting up a Giga Corridor in Telangana, positions it well for future growth. The company's strategic investments and strong financial health are expected to drive further expansion in both domestic and international markets.
The company’s commitment to sustainability, including initiatives in renewable energy and lead recycling, aligns with global trends towards environmental responsibility, offering additional growth opportunities.
### Conclusion
Amara Raja Energy & Mobility Limited demonstrates strong financial performance and growth potential. Its strategic initiatives in the new energy sector and continued dominance in the lead-acid battery market make it an attractive investment for both short-term and long-term investors.
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