Annual Report 2019-20
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PROGRESS... ON! AMARA RAJA BATTERIES LIMITED ANNUAL REPORT 2019-20 Every road forks into two ways: down one way, there’s a continuity of life as it comes, down the other, there’s a zeal to bring in disruptive CORPORATE OVERVIEW changes to make path- Vision, Core Purpose and Values 2 breaking transformations. Financial progress 4 We chose the second From the Management’s Desk 6 lane. It called for a lot of Awards & Recognition 10 blood, sweat and hard toil, STATUTORY DOCUMENTS yet we stuck on. And, we Management Discussion & Analysis 12 triumphed. We progressed Corporate Social Responsibility 70 at every step and emerged 10-Year Financials 75 better every day. Corporate Information 76 Directors’ Report 77 Along the way, we reinvented ourselves, FINANCIAL STATEMENTS to remain relevant and Standalone Financial Statements 159 resolute in sync with the Consolidated Financial Statements 220 evolving paradigm of NOTICE 279 business and advancing technology. We resolved every issue differently, devised every system inimitably, and confronted every challenge distinctively. Because, we always believed there’s Gotta be a Better Way. Amara Raja Batteries Limited 1 Vision, Core purpose and Values Core Purpose To transform our increasing spheres of influence and to improve the quality of life by building institutions that provide better access to better opportunities to more people… all the time. Core Values Innovation Innovation to us is proactively rebelling for Vision better ways of doing things leading to newer possibilities. Through the Amara Raja way® Excellence and through enduring progressive partnerships Excellence to us is continually enhancing our performance to consistently produce we will be a Global Leader outstanding results with lasting impact. in Batteries and Battery Technologies and Entrepreneurship a dominant player in the Indian Ocean Rim. Entrepreneurship to us is leading with courage and conviction to convert gaps into opportunities, create wealth and contribute to growth. Experiences Experiences to us are what we create for our stakeholders, which makes them feel part of something special, leading to endearing relationships. Responsibility Responsibility to us is the total ownership of our thoughts and actions in every situation to achieve maximum common good in the best interest of Environment, Society, Customer, Supplier, Employee and Shareholders. 2 Annual Report 2019-20 Amara Raja Batteries Limited 3 4 Financial Financial Annual Report 2019-20 Report Annual momentum. This in no uncertain terms is …Progress On! …Progress momentum. is Thisinnouncertain terms Company’s abilityto sustain highlightsits indicators the key financialperformance five-year summary of Acomparative, environment. intheeconomicandsectoral posed bythesignificantheadwindsprevailing metrices despitehurdles performance key across onits journey steadfast growth hasremained Raja Amara Indicators Performance Key FY 2015-16 4,633 Net sales ( C Progress FY 2016-17 5,335 crores) FY 2017-18 6,051 FY 2018-19 6,793 FY 2019-20 6,839 FY 2015-16 849 ( C EBITDA FY 2016-17 878 crores) FY 2017-18 929 FY 2018-19 990 FY 2019-20 1,125 FY 2015-16 492 Tax after Profit ( C FY 2016-17 478 crores) FY 2017-18 471 FY 2018-19 483 FY 2019-20 661 FY 2015-16 555 Net Cashfrom Operation ( C FY 2016-17 553 crores) FY 2017-18 322 FY 2018-19 541 FY 2019-20 1,177 Earnings per share Earnings pershare FY 2015-16 28.78 FY 2016-17 28.01 ( C FY 2017-18 27.59 ) FY 2018-19 28.31 FY 2019-20 38.69 FY 2015-16 2,116 Networth ( C FY 2016-17 2,593 crores) FY 2017-18 2,937 FY 2018-19 3,335 FY 2019-20 3,656 FY 2015-16 1,352 Net Fixed Assets ( C FY 2016-17 1,492 crores) FY 2017-18 1,703 FY 2018-19 1,813 FY 2019-20 1,829 Net Current Assets Net Current Amara Raja Batteries Limited Batteries Limited Raja Amara FY 2015-16 749 ( C FY 2016-17 868 crores) FY 2017-18 1,124 FY 2018-19 1,342 FY 2019-20 934 5 From the Management’s desk From the management “Technology leadership has been our hallmark since Dear Friends, inception. We take great pleasure to address supplying lithium ion packs for Our industrial division also you as we look forward to a year the largest single site lithium ion contoured an innovative This niche edge has with renewed hope and optimism. installation in India by a leading technology-driven shift – from powered the telecom player. products to solutions. We have As we look back at the year gone successfully entered the telecom Company to by, we find a sense of satisfaction Technology leadership has been tower management space with and success in our performance. our hallmark since inception. the deployment of the Intelligent redefine the We were able to keep up our core This niche edge has powered the Telecom Monitoring System philosophy – making meaningful Company to redefine the domestic at cellphone towers, a product domestic progress in every aspect of our storage battery market by of our R&D work in IoT. This storage battery business. We believe that progress, introducing globally benchmarked solution allows us to monitor at Amara Raja, is not a strategy or a products. In 2019-20, we took tower performance across every market by KRA, it is rather the organisational giant strides in strengthening our parameter in diverse environments, DNA. Progress comes to us technology repository. real time, on handheld devices. introducing naturally. This achievement has the promise Plates are at the heart of the to open a sustainable and growing globally Progress on! functioning of a battery. Plate revenue vertical for the Company. It benchmarked At Amara Raja, 2019 -20 has been a making at Amara Raja has surely is an exciting prospect. year of great achievements. progressed from workhorse products. In 2019- gravity casting to continuous plate From the sustainability perspective, From the financial perspective, we we have put up a 9.25-MW making. And now we are readying 20, we took vaulted out of the C700-730-crore solar rooftop installation at our to launch the advanced stamped profitability band after 3-4 years operating unit, which is one of giant strides in grid technology. with a 20% leap on our pre-tax the largest industrial rooftop strengthening our profit, which stood at C840 crore on Our teams worked with subject- installations in India. Another 31 March 2020. matter experts from Clarios 8.4-MW installation should be technology operational this year. From the business perspective, (erstwhile Johnson Controls repository.” our automotive division secured International plc). Commissioning We are ready for the future – approvals from two large two- of new manufacturing lines are confident, capable and placed wheeler OEs operating in India. The under progress. We are also firmly. Progress on, indeed. benefits will accrue in the current undertaking an extensive fleet- year. The industrial division, even testing programme to assess the Dr. Ramachandra N Galla as we completed the world’s largest performance of the battery in Chairman lead-acid energy storage system Indian vehicle application. Our new in Africa, bagged the contract for products will hit the market shortly. 6 Annual Report 2019-20 Amara Raja Batteries Limited 7 From the Management’s desk Our today… The collateral damage done by portfolio, sound technology, strong the microbe has hit almost every financials, brand equity and, above The new fiscal began in an industry in some way or the other. all, a great team. Their passion, unprecedented way with the But some sectors had a positive professionalism and perseverance Corona virus pandemic bringing rub-off. Telecom, for instance, saw of working with our customers, life to a sudden halt. Lockdowns green shoots of recovery after years partners and with each other gives imposed across large parts of of considerable turmoil. The data us an exceptional edge in this the world took a massive toll on center space also looks promising as competitive business space. business activities. Indian enterprises, small and large, We will persistently explore new To deal with such trying times, increasingly aligned themselves ways to improve our topline growth we created crisis management and will continue to do so, with the and profitability. We will further teams with clear objectives and digital transformation sweeping the optimise our plant efficiencies by deliverables. While one team Indian landmass. improving engineering quality focused on the safety of our And tomorrow… and overall productivity. Fiscal entire workforce, another team prudence and a relentless focus on zeroed in on business continuity The journey ahead of us is indeed efficient capital allocation is our – communicating with customers riveting. We will only sharpen our guiding principle. In sync with this, and addressing priority deliveries, focus on technology deployment, we continue to pursue returns- especially to the telecom sector. efficiency improvement, sustainable accretive projects with a strategic manufacturing and exports. As they say grave adversity intent of continuing to deliver presents interesting opportunity, As we look aggressively to venture industry-leading returns through it was the same with Covid-19. The beyond India’s boundaries, we the cycle. pandemic presented a rare but are focused on building a robust As we continue our journey of narrow window of opportunity to exports-driven global business by scaling new peaks, we would like reflect, reimagine and reset our leveraging our diversified product to thank the Board for guiding world. Our leadership became portfolio and making inroads into us to execute our respective more cohesive. Instead of lucrative overseas markets. We will responsibilities in the best possible talking from a business function unleash the power of the brand manner. We would like to extend perspective, or a company Amaron by leveraging our existing our gratitude to each and every standpoint, official discussions and relationships with global OEMs member of the Amara Raja team debates happened at a Group level.