- 05 Aug 2024
- ICICI Securities
Amara Raja reports healthy Q1FY25 results, outpacing its listed peer
ARE&M - 1424 Change: 12.85 (0.91 %)News: Net sales for the quarter came in at ₹ 3,131 crore, up 13% YoY. EBITDA in Q1FY25 came in at ₹ 430 crore with corresponding EBITDA margins at 13.7%, down 90 bps QoQ. PAT in Q1FY25 stood at ₹ 245 crore, up 27% YoY. Company witnessed healthy demand in automotive replacement space and certain OEM vehicle categories with steady demand prospects in industrial segment (growth led by USP segment).
Views: Gross margins decline for the quarter was sharp at ~340 bps however it managed to mitigate large part of it through lower other expenses (down 265 bps QoQ). Company’s performance outpaced its listed peer which reported 5.9% YoY growth in sales and 11.5% as EBITDA margin profile (down 140 bps QoQ). With technology tie-up in place for Li-On cell manufacturing (with GIB EnergyX Slovakia, a subsidiary of Gotion High-Tech Co Ltd.) as well as onboarding of Ather Energy as one of its key OEM anchor clients for this new energy space, long term prospects are healthy at the company going forward.
Impact: Positive