Amara Raja Batteries Q4FY16 standalone net profit rises 6% yoy to Rs.108.60 crore : Misses Estimates

The company’s standalone revenue stood at Rs. 1,169.65 crore, up 9.65% yoy but down 4.53% qoq.

May 25, 2016 8:00 IST | India Infoline News Service
Amara Raja
Amara Raja Batteries , leading battery makers and power solutions provider, reported standalone net profit of Rs.108.60 crore for the quarter ended March 31, 2016, registering growth of 6.2% yoy, but decline of 20.25% qoq. The company’s revenue stood at Rs. 1,169.65 crore, up 9.65% yoy but down 4.53% qoq.

Its standalone core operating profit of Rs. 190.75 crore for the quarter, clocked growth of 8.68% yoy but decline of 16.56% qoq. Operating profit margin for the current quarter at 16.31% contracted by 14 bps yoy and 235 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 489.44 crore, growing by 19.13% yoy. Its standalone revenue for the period stood at Rs. 4,690.67 crore, registering growth of 11.38% yoy.

Amara Raja Batteries Ltd's core operating profit stood at Rs. 819.86 crore, recording growth of 16.82% yoy. Operating margin for the current period at 17.24% expanded by 58 bps yoy.

Amara Raja Batteries (Q4 FY16) -Weak performance:

For Q4 FY16, Amara Raja reported a revenue of Rs1,170cr, which was lower than IIFL estimate of Rs1,241cr. Revenues for the quarter were higher by 9.3% yoy and lower by 4.5% qoq. The company for the quarter reported an OPM of 16.3%, which was substantially lower than IIFL estimate of 18.2%. Margins were at lowest level since Q4 FY14. Operating profit for the quarter was higher by 1.6% yoy but was lower by 16.6% qoq, while OPM was lower by 124bps yoy and 235bps qoq. For Q4 FY16, Amara Raja reported a PAT of Rs109cr, which was lower than our estimate of Rs136cr. PAT for the quarter were higher by 6.2% yoy and lower by 20.3% qoq.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 1169.65 1241 [5.75]
Standalone Net Profit 108.60 136 [20.15]

Standalone EPS for the quarter stood at Rs. 6.36.

Bloomberg estimated the company’s standalone net profit at Rs. 134.77 crore.

Stock Commentary:

Amara Raja Batteries Ltd is currently trading at Rs. 858.05, down by 36.4 points or 4.07% from its previous closing of Rs. 894.45 on the BSE.

The scrip opened at Rs. 860 and has touched a high and low of Rs. 869.9 and Rs. 845.25 respectively. So far 136238(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 15277.21 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1132 on 25-Aug-2015 and a 52 week low of Rs. 773.05 on 18-Jan-2016. Last one week high and low of the scrip stood at Rs. 965.1 and Rs. 880 respectively.

The promoters holding in the company stood at 52.06 % while Institutions and Non-Institutions held 29.16 % and 18.78 % respectively.

The stock is currently trading above its 50 DMA.

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