Moneycontrol
Last Updated : May 29, 2012 03:41 PM IST | Source: CNBC-TV18

Amara Raja eyes double digit revenue growth in FY13

In an interview with CNBC-TV18, Suresh Kalyan, CFO of Amara Raja said that there has been a significant growth in its industrial as well as automotive battery divisions.


Automotive and industrial battery manufacturer, Amara Raja posted a top line growth of 34% for FY12. The company also registered net profit and net sales of Rs 670.6 crore in comparison to Rs 500.8 crore in the corresponding quarter last fiscal.


Volume growth, better price realization and softening of lead prices resulted in a surge of Amara Raja's top and bottom line during Q4FY12.


In an interview with CNBC-TV18, Suresh Kalyan, CFO of Amara Raja said that there has been a significant growth in its industrial as well as automotive battery divisions.


For the next fiscal, the company is targeting a double digit growth in its revenues. However, the depreciating rupee is causing some concern and according to Kalyan, the falling rupee can negate the gains accrued from softening lead prices. 


Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video.


Q: Can you break up the volume growth in industrial and automotive segments for us?


A: We had a significant growth in both the divisions, industrial as well as automotive. We have clocked about 14% volume growth in industrial battery business, 19% in four-wheeler battery business and 26% in two-wheeler automotive battery business.


Q: What is it that you are guiding to for FY13 in terms of growth?


A: Our endeavor is to clock a double digit growth. The macroeconomic conditions are different at this point in time and it would have an adverse bearing on the automobile products. Despite that we would like to clock a double digit growth.


Q: You have faced some relief in terms of raw material costs but how much of a recovery do you expect to see on margins going into FY13?


A: Though the lead is softening and it is currently trading at about USD 1,950 per metric tonne, but the rupee is depreciating. The rupee depreciation would negate the gains which might accrue from lead softening. Our guidance therefore, could be somewhere around 15% operating margins in FY13.


Q: There was a lot of nervousness in the market when your key competitor Exide dropped prices recently. Did you respond to that, do you see prices coming off?


A: We did watch their move for a while. Then looking at the market dynamics we did adjust prices in two part numbers. But we didn't take price rise across the board in the way that Exide has done.

Our endeavour would be to see the price go up because the input costs are going up. At some point in time we would like to be decoupled from the competition and then be on our own in terms of pricing.

First Published on May 29, 2012 10:44 am
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