Amara Raja Q3 Review - Miss In Operating Performance, Higher Other Income Aids: Motilal Oswal 

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Motilal Oswal Report

Amara Raja Batteries Ltd.’s Q3 FY21 operating performance was below our estimate due to revenue miss and higher staff cost.

Raw material cost pressures continue due to lead price inflation. However, sustenance of demand momentum will dilute impact through price pass-through and operating leverage.

Revenue/Ebitda/profit after tax came in approximately Rs 19.5 billion/Rs 3 billion/Rs 1.9 billion in Q3 FY21, up ~12%/8%/17.5% YoY.

In nine months FY21, the same declined by 4%/7%/13% YoY.

Higher other income (due to reversal of provisioning of Rs 150 million) boosted adjusted PAT to Rs 1.93 billion (versus our estimate of Rs 1.95 billion), up 17.5% YoY.

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