Results below expectations: Amara Raja Batteries (ARBL) reported a 30.9% growth in its top-line at Rs4.3bn in Q4FY10, mainly led by strong sales in the automotive segment. However, due to pricing pressure in the telecom vertical (which accounts for 30% of the topline), EBITDA margins declined by 350bps to stand at 14.6%. At the same time, the raw material cost increased by 480bps YoY at 66.1% of net sales in Q4FY10. As a result, EBITDA growth was muted at 5.9% at Rs634m. On a sequential basis, EBITDA margins declined by 420bps QoQ on account of higher lead prices and a slowdown on the telecom side of the
business. As a result, Adj. PAT grew by 7% YoY at Rs337m...
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http://www.dsij.in/productattachment/BrokerRecommendation/Amara%20Batte.pdf
Source: Dalal Street investment Journal
http://www.dsij.in