- 05 Nov 2024
- ICICI Securities
AMARA RAJA ENERGY AND MOBILITY LTD REPORTS HEALTHY Q2FY25 RESULTS, OUTPACING ITS LISTED PEER
News: Net sales for the quarter came in at ₹ 3,136 crore, up 11.6% YoY. EBITDA in Q2FY25 came in at ₹ 441 crore with corresponding EBITDA margins at 14.1%, up 31 bps QoQ. PAT in Q2FY25 stood at ₹ 241 crore, up 6.3% YoY. Company witnessed healthy demand in automotive aftermarket and export market. It also declared an interim dividend of ₹ 5.3/share with record date set as 14th Nov 2024.
Views: Company’s performance outpaced its listed peer which reported 3.9% YoY growth in sales and 11.3% as EBITDA margin profile (down 12 bps QoQ). With ongoing construction of a new cell manufacturing plant and the expansion of their recently inaugurated battery pack facility, ARE&M is well-positioned for future growth. The leadership remains confident in their strategic initiatives, focusing on advancements in Li-ion battery technology and enhancements to their lead-acid battery portfolio to cater to emerging market segments and strengthen their global presence.
Impact: Positive