Amara Raja Energy & Mobility Limited — PPTs, 09-02-2025: Investor Presentation

**Updates**

Amara Raja Energy & Mobility Limited (formerly Amara Raja Batteries Limited) is actively enhancing its market position with significant developments across multiple fronts. The company reported a market cap of approximately ₹219 billion and boasts 10 manufacturing facilities, alongside an impressive 55 million units annualized capacity for automotive batteries. Their strong brand reputation is exemplified by a 19% ROI and a presence in over 50 countries. The company's expansion into the New Energy sector is underscored by a planned investment of ₹95 billion for a Giga Corridor in Telangana, aiming to tap into India's burgeoning electrification demand expected to reach 150 GWh by 2030. The operational updates indicate robust growth, especially in the 2W and 4W battery segments. However, muted growth in the industrial lead-acid battery segment is noted due to a shift towards lithium alternatives. Investors should remain optimistic about opportunities in the e-mobility space while being cognizant of potential challenges in the traditional battery sectors.

**Investor Presentation**

1. **Financial Highlights:** For Q3 FY25, consolidated revenue reached ₹32,725 million, reflecting a year-on-year growth of 7.5%. Despite the increase in operational revenue, EBITDA dropped to ₹4,058 million, indicating a decline in margins to 12.4%. The company recorded PAT of ₹2,984 million, with a margin of 9.1%, up from ₹2,679 million in the previous year.

2. **Strategic Initiatives and Growth Drivers:** Amara Raja is transitioning its brand and operations toward renewable energy solutions and electric mobility, leveraging its established reputation. The firm aims to enhance capabilities in lithium-ion battery manufacturing and set up E Positive Energy Labs.

3. **Business Developments:** The acquisition of Amara Raja Power Systems is anticipated to fortify the company's charging solutions portfolio as they delve deeper into renewable energy solutions.

4. **Market Position and Competitive Advantage:** The company is recognized as a leader in the lead-acid battery market while simultaneously capitalizing on growth opportunities within the new energy segment. Their established export framework enhances market resilience amid domestic constraints.

5. **Investor Implications:** The shift towards electric mobility and renewable energy positions Amara Raja well for future growth, though investors should monitor competitive pressures in traditional battery markets, especially concerning electric vehicle battery integration.

**Company Announcement**

In the latest earnings presentation, Amara Raja Energy & Mobility Limited highlighted a robust operational performance with revenue growing by 7.5% in Q3 FY25 while PAT improved to ₹2,984 million. The company is expanding its New Energy segment with significant investments planned for Telangana, focusing on a Giga Corridor. Notable operational growth was observed in 2W and 4W battery sectors, while traditional industrial sales were subdued due to the transition toward lithium batteries.