-Earnings were led by softening of RM costs coupled with volume growth across segments. The recent moderation in lead prices will aid margin recovery. Volumes should see an upward trajectory in both automotive and industrial segments.

-4W volumes grew 13-14% YoY, driven by strong growth in OEMs, ~10% growth in replacement, and 18-19% growth in exports. 2W volumes grew 10% YoY, with 11-12% growth in replacement, and 7-8% YoY growth in OEMs. Home inverter volumes declined 10% YoY

-Plans to start investing for the new energy venture from 2HFY23 onwards

-Capex in lead acid business for FY23 is expected to be at INR 5-6 billion for capacity expansion, solar power, and recycling plant. Investment in li-ion will be over and above it.

Amara Raja Batteries is gearing up to be a leader by a) consolidation in existing areas; b) undertaking new business opportunities within the Battery space, mainly Home UPS, Solar, and Motive Power; and c) undertaking capacity and network expansion. In the Telecom segment, the management expects to maintain its market share at its current levels (~55%).

Amara Raja is focusing on maximizing its core LAB business and foraying into the New Energy business (in the form of li-ion cells and battery packs, EV charging products, energy storage solutions, etc.). While the LAB business will go global, the New Energy business will focus on opportunities in India. While growth in LAB will recover strongly, the delivery of 15-17% CAGR over the next five years depends on the successful execution of its export strategy. While its entry into the New Energy business is a step in the right direction, its success will depend on a technology partner, cost competitiveness, targeted segments, etc.