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3QFY2013 Result Update | Auto Ancillary

January 31, 2013

Amara Raja Batteries


Performance Highlights
Y/E March (` cr) Net Sales EBITDA EBITDA Margin (%) Adj. PAT
Source: Company, Angel Research

ACCUMULATE
CMP Target Price
% chg (yoy) 23.8 14.6 (129)bp 22.7 2QFY13 719 118 16.4 79 % chg (qoq) 5.6 3.3 (37)bp 1.8

`308 `323
12 Months

3QFY13 759 122 16.0 81

3QFY12 613 106 17.3 66

Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Auto Ancillary 5,257 (161) 0.5 328/109 42,275 2.0 19,895 6,035 AMAR.BO AMRJ@IN

Amara Raja Batteries (AMRJ) reported strong results for 3QFY2013 with top-line and bottom-line performance beating our estimates yet again. AMRJ has announced a capital expenditure plan of `750cr over the next two years to ease the capacity constraints that it is facing currently. We expect the company to sustain its growth momentum going ahead, led by widening reach, strong product offerings and increasing capacity. Further, price hike of ~4% in the replacement segment should enable the company to offset the impact of the recent surge in lead prices. We revise our revenue and earnings estimates upwards to factor in the strong operating performance during the quarter. Nevertheless, due to limited upside from the current levels we recommend an Accumulate rating on the stock. 3QFY2013 performance beats estimates: For 3QFY2013, AMRJ posted a robust top-line growth of 23.8% yoy (5.6% qoq) to `759cr led by strong double digit revenue growth in the automotive replacement (four-wheeler as well as two-wheeler) and industrial (telecom and UPS) battery segments. However, depressed OEM demand and capacity constraints for four-wheeler batteries capped further growth in the top-line. On the operating front, margins remained stable on a sequential basis and stood at 16% as raw-material expense for the company remained stable despite increase in lead prices. On a yoy basis though, margins declined 130bp mainly on account of 200bp increase in other expenditure as a percentage of sales which could possibly be on account of higher power and advertising expenses. Led by strong operating performance and higher other income, net profit registered a strong 22.7% yoy (flat qoq) growth to `81cr. Outlook and valuation: Due to the strong operating performance over the last seven quarters, AMRJ has closed the valuation gap to the market leader Exide; both the companies are now trading at similar PE multiples (one year forward basis). We expect the company to sustain its performance going ahead and estimate AMRJ to post a strong revenue CAGR of ~21% over FY201214E, leading to an ~30% CAGR in its net profit, aided by sustained growth in the automotive and industrial battery volumes. At `308, AMRJ is trading at 14.3x FY2014E earnings. We recommend an Accumulate rating on the stock with a target price of `323, valuing the stock at 15x (in-line with Exide) FY2014E EPS.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 52.1 21.0 12.6 14.3

Abs. (%) Sensex AMRJ

3m 7.5 36.1

1yr 15.7 185.0

3yr 21.6 294.0

Key financials (Standalone)


Y/E March (` cr) Net Sales % chg Net Profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 1,761 20.3 148 (6.9) 14.6 8.7 35.5 8.1 24.9 30.3 3.0 20.5

FY2012 2,367 34.4 215 45.2 15.0 12.6 24.4 6.4 29.3 35.9 2.2 14.4

FY2013E 2,983 26.0 316 47.1 16.1 18.5 16.6 4.8 32.9 39.7 1.7 10.5

FY2014E 3,477 16.6 368 16.4 16.1 21.6 14.3 3.7 29.1 36.7 1.5 9.4

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Amara Raja Batteries | 3QFY2013 Result Update

Exhibit 1: Quarterly financial performance (Standalone)


Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Purchases of TG (% of Sales) Employee expense (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT Adj PAT Adj. PATM Equity capital (cr) Reported EPS (`) Adjusted EPS (`)
Source: Company, Angel Research

3QFY13 759 447 58.9 54 7.1 32 4.2 104 13.8 637 122 16.0 0 13 7 116 116 15.2 35 30.0 81 81 10.7 17.1 4.7 4.7

3QFY12 613 393 64.0 14 2.3 27 4.4 73 11.9 507 106 17.3 2 12 5 98 98 16.0 32 32.7 66 66 10.7 17.1 3.9 3.9

% chg (yoy) 23.8 13.9 278.5 19.4 42.6 25.7 14.6 (90.3) 10.4 33.5 17.9 17.9 7.8 22.7 22.7

2QFY13 719 420 58.4 52 7.3 30 4.2 99 13.7 601 118 16.4 1 13 7 111 (9) 102 14.2 32 31.1 70 79 11.1 17.1

% chg (qoq) 5.6 6.6 0.9 2.6 (2.9) 6.1 0.5 6.0 0.3 6.1 3.3 (2.2) (76.2) 0.1 0.7 4.0 13.5 7.5 9.3 (3.7) 15.4 1.8 (3.6) 0.0 15.4 1.8

9MFY13 2,172 1,278 58.9 158 7.3 91 4.2 285 13.1 1,812 359 16.5 1 39 20 339 (9) 330 15.2 103 31.1 227 236 10.9 17.1 13.3 13.8

9MFY12 1,700 1,114 65.5 38 2.3 72 4.2 214 12.6 1,438 262 15.4 3 34 8 233 233 13.7 76 32.7 157 157 9.2 17.1 9.2 9.2

% chg (yoy) 27.7 14.8 310.8 27.3 33.2 26.0 37.0 (67.9) 14.9 158.6 45.6 41.6 34.8 44.9 50.8

22.7 22.7

4.1 4.7

44.9 50.8

Better-than-expected growth in top-line: AMRJ reported a strong 23.8% yoy (5.6% qoq) growth in its top-line to `759cr led by strong double digit revenue growth in the automotive replacement (four-wheeler as well as two-wheeler) and industrial (telecom and UPS) battery segments. However, depressed demand from original equipment manufacturers (OEMs) and capacity constraints for four-wheeler batteries restricted further growth in the top-line. The company is investing `750cr for capacity expansion over the next two years in order to cater to the increasing demand across its product segments. AMRJ expects to increase large valve-regulated lead-acid (VRLA), medium VRLA, two-wheeler and four-wheeler battery capacity over the next 12-18 months. AMRJs capacity utilization for four-wheeler batteries is currently at ~90% and the Management expects the same to remain at current levels in 4QFY2013. The company is expanding its four-wheeler battery manufacturing capacity at the Chittoor plant from 5.6mn units a year to 6mn units by end of FY2013. The company has plans to increase it further to 8mn units by FY2015. Of the existing capacity of 5.6mn four-wheeler batteries, around one-third is supplied to the OEMs and the remaining to the replacement segment. For the two-wheeler battery segment, out of the installed capacity of 4.8mn batteries, around 3.6mn units are supplied to

January 31, 2013

Amara Raja Batteries | 3QFY2013 Result Update

the replacement segment. The company would commence supplies to two-wheeler OEMs soon. The company is also expanding its medium VRLA battery capacity from 1.8mn units to 3mn units by end of FY2013.

Exhibit 2: Strong top-line growth of 23.8% yoy


(` cr) 800 700 600 500 400 300 200 100 0 426 501 525 562 613 672 694 719 759 15.8 15.7 17.5 Net sales (LHS) 43.2 44.1 34.1 32.2 yoy growth (RHS) (%) 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

27.9

23.8

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

EBITDA margin sustained at 16%: During 3QFY2013, margins remained stable on a sequential basis and stood at 16% as raw-material expense for the company remained stable despite increase in lead prices. On a yoy basis though, margins declined 130bp, mainly on account of a 200bp increase in other expenditure as a percentage of sales, which could possibly be on account of higher promotional and advertising expenses and also on account of higher power costs. As a result, the operating profit jumped 14.6% yoy (3.3% qoq) to `122cr.

Exhibit 3: Average lead price trend


(US $/tonne) 5,000 4,000 3,000 2,000 1,000 0 Lead inventory (RHS) Lead prices (LHS) (tonne) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

Exhibit 4: EBITDA margin at 16%


(%) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 16.0 14.2 12.9 15.7 17.3 14.2 17.2 16.4 16.0 64.1 EBITDA margin 67.3 70.3 66.9 66.4 Raw-material cost/sales 66.2 66.7 65.7 66.0

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13
3QFY13

Mar-07

Mar-08

Source: Company, Angel Research

Dec-12

Jan-11

Apr-06

Feb-09

Feb-10

Jan-12

Source: Company, Angel Research

Adjusted net profit beats estimates; up 22.7% yoy: Led by a strong operating performance and significant increase in other income (up 33.5% yoy), the adjusted net profit registered a 22.7% yoy (flat qoq) growth to `81cr.

January 31, 2013

Amara Raja Batteries | 3QFY2013 Result Update

Exhibit 5: Adjusted net profit ahead of estimates


(`cr) 90 80 70 60 50 40 30 20 10 0 40 41 39 52 66 58 76 79 81 9.3 8.2 7.4 Net profit (LHS) 10.7 9.2 Net profit margin (RHS) 11.1 11.0 8.7 10.7 (%) 12.0 10.0 8.0 6.0 4.0 2.0 0.0

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

January 31, 2013

3QFY13

Amara Raja Batteries | 3QFY2013 Result Update

Investment arguments
AMRJ is Indias second-largest manufacturer of lead batteries, with a market share of ~28%. US based Johnson Controls is a joint venture partner of AMRJ and holds a 26% equity stake in the company. The automotive and industrial battery segments contributed ~55% and ~45% respectively to AMRJs overall revenue in FY2012. We expect the automotive battery market to post an 18-20% CAGR in sales over FY201214E, led by healthy growth in replacement demand, an 8-10% CAGR in new vehicle sales and shrinking market share of unorganized players. Thus, during FY201214E, we expect AMRJs automotive battery segment to post an ~18% revenue CAGR. Also, with a strong focus on strengthening its distribution network, we expect AMRJ to increase its market share going ahead. AMRJ pioneered the use of maintenance-free batteries with a presence in the railway signaling, telecom, power and supply solutions segments. Going forward, we expect the power backup (home UPS) segment to drive demand for industrial batteries, leading to an ~19% revenue CAGR in AMRJs industrial battery segment over FY201214E.

Outlook and valuation


We expect the company to sustain its growth momentum going ahead, led by widening reach, strong product offerings and increasing capacity. We revise our revenue and earnings estimates upwards to factor in the strong operating performance during the quarter. We estimate AMRJs top-line to witness a strong CAGR of ~21% over FY201214E, leading to an ~30% CAGR in its net profit, aided by sustained growth in the automotive and industrial battery volumes.

Exhibit 6: Change in estimates


Y/E March Net Sales (` cr) OPM (%) EPS (`)
Source: Company, Angel Research

Earlier Estimates 2,850 16.0 295 3,309 16.0 339

Revised Estimates 2,983 16.1 316 3,477 16.1 368

% chg 4.7 6bp 7.0 5.1 13bp 8.7

FY2013E FY2014E FY2013E FY2014E FY2013E FY2014E

On the valuation front, AMRJ is trading at 14.3x FY2014E earnings. Historically, AMRJ has traded at a discount to Exide (due to Exides leadership position, scale of operations, superior margins and return ratios). But both the companies now trade at similar PE multiples as AMRJ has closed the valuation gap with robust operating performance over the last seven quarters. We expect AMRJ to sustain its strong performance going ahead on the back of increasing scale of operations, which will lead to sustainable revenue and earnings visibility. We recommend Accumulate rating on the stock with a target price of `323, valuing the stock at 15x (in-line with Exide) FY2014E EPS.

January 31, 2013

Amara Raja Batteries | 3QFY2013 Result Update

Exhibit 7: Angel vs consensus forecast


Angel estimates FY13E Net sales (` cr) EPS (`) 2,983 18.5 FY14E 3,477 21.6 Consensus FY13E 2,925 17.5 FY14E 3,498 20.8 Variation (%) FY13E 2.0 6.1 FY14E (0.6) 3.6

Source: Company, Angel Research

Exhibit 8: One-year forward P/E band


(`) 350 300 250 200 150 100 50 0 CMP (`) 5x 8x 11x 14x

Exhibit 9: AMRJ P/E Premium/Discount to Exide


(%) 20.0 0.0 (20.0) (40.0) (60.0) (80.0) (100.0) prem./ disc. to Exide Five-yr average Prem/Disc

Dec-04

Nov-07

Dec-02

Dec-07

Aug-04

Aug-09

Dec-12

Feb-02

Feb-07

Feb-12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 10: Auto Ancillary Recommendation summary


Company Amara Raja Batteries Automotive Axle Bharat Forge* Bosch India# Exide Industries FAG Bearings Subros
# ^

Reco. Accumulate Neutral Buy Neutral Accumulate Buy Neutral Buy

CMP (`) 308 355 230 9,244 123 1,528 197 27

Tgt. price (`) 323 278 131 1,807 35


#

Upside (%) 5.1 21.0 6.3 18.3 30.5

P/E (x) FY13E 16.6 15.9 12.2 23.3 21.0 12.0 24.5 10.4
^

EV/EBITDA (x) FY13E 10.5 6.5 6.1 14.3 11.3 6.9 9.4 4.4 FY14E 9.3 5.0 5.1 12.0 8.2 5.5 7.7 3.8 14.3 10.9 9.9 20.3 15.7 10.1 18.6 5.4

RoE (%) FY13E 32.9 12.1 18.5 18.8 15.4 21.7 22.9 5.6 FY14E 29.1 16.2 19.7 18.2 18.2 21.1 24.7 10.3

FY12-14E EPS CAGR (%) 30.8 4.5 14.6 19.0 20.2 22.0 56.2 0.2

FY14E

Motherson Sumi*

Source: Company, Angel Research; Note: * Consolidated results;

December year end;

September year end

Company background
Amara Raja Batteries, a JV between Galla family and Johnson Controls, US, is India's second largest manufacturer in the organized valve-regulated lead-acid (VRLA) batteries market, finding applications in the automotive (~55% of total revenue) and industrial (~45% of total revenue) segments. AMRJ has a market share of 26% in four-wheeler OEMs, 19% in four-wheeler replacement and 25% in two-wheeler replacement battery markets. The company also commands dominant market shares of 46% and 32% in the telecom and UPS battery segments respectively. AMRJ derives ~45% and ~35% of its industrial segment's revenue from the telecom and UPS battery segments respectively.

January 31, 2013

Mar-12

Aug-08

Dec-12

Jun-06

Apr-04

Apr-09

Jan-10

Feb-07

Oct-10

Apr-01

Apr-06

Oct-03

Oct-08

Apr-11

Sep-05

Jun-05

Jun-10

Jul-11

Amara Raja Batteries | 3QFY2013 Result Update

Profit and loss statement (Standalone)


Y/E March (` cr) Total operating income % chg Total expenditure Net raw material costs Other mfg costs Employee expenses Other EBITDA % chg (% of total op. income) Depreciation & amortization EBIT % chg (% of total op. income) Interest and other charges Other income Recurring PBT Extraordinary expense PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of total op. income) Basic EPS (`) Adj. EPS (`) % chg FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 1,313 21.2 1,144 869 48 52 175 169 (5.5) 12.9 35 135 (12.9) 10.3 20 8 123 (0) 123 42 34.4 80 81 (14.7) 6.1 4.7 4.7 (43.1) 1,464 11.5 1,176 880 61 62 173 288 70.4 19.7 43 246 82.3 16.8 8 17 255 8 255 88 34.4 167 159 97.7 10.9 9.8 9.3 97.7 1,761 20.3 1,504 1,158 86 88 171 257 (10.8) 14.6 42 216 (12.2) 12.2 3 8 220 220 72 32.8 148 148 (6.9) 8.4 8.7 8.7 (6.9) 2,367 34.4 2,013 1,596 92 100 225 354 37.5 15.0 46 308 42.6 13.0 4 15 319 319 104 32.5 215 215 45.2 9.1 12.6 12.6 45.2 2,983 26.0 2,504 1,970 115 128 290 479 35.3 16.1 54 425 38.1 14.2 2 37 459 459 143 31.1 316 316 47.1 10.6 18.5 18.5 47.1 3,477 16.6 2,916 2,291 133 151 340 561 17.1 16.1 62 499 17.6 14.4 3 45 541 541 173 32.0 368 368 16.4 10.6 21.6 21.6 16.4

January 31, 2013

Amara Raja Batteries | 3QFY2013 Result Update

Balance sheet statement (Standalone)


Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders Funds Total loans Deferred tax liability Other long term liabilities Long term provisions Total Liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Investments Long term loans and advances Other noncurrent assets Current assets Cash Loans & advances Other Current liabilities Net current assets Total Assets 427 146 281 40 47 526 70 87 369 184 342 710 491 185 306 23 16 631 62 109 460 319 312 656 539 224 315 38 16 15 732 45 97 590 349 383 767 621 267 355 32 16 12 937 229 121 586 407 530 944 757 321 436 45 20 12 1,229 263 194 772 547 682 1,196 1,229 383 846 74 26 12 1,135 56 226 853 569 566 1,524 710 656 17 389 406 286 18 17 527 544 91 22 17 629 646 90 20 10 767 17 806 823 84 22 15 944 17 1,083 1,100 59 22 15 1,196 17 1,411 1,429 59 22 15 1,524 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

January 31, 2013

Amara Raja Batteries | 3QFY2013 Result Update

Cash flow statement (Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in working capital Others Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in fixed assets (Inc.)/Dec. in investments Other income Cash Flow from Investing Issue of equity Inc./(Dec.) in loans Dividend paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in cash Opening Cash balances Closing Cash balances FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 123 35 (65) 194 (8) (42) 236 (90) (31) 8 (113) 6 (30) 5 (84) (104) 19 51 70 255 43 38 (17) (17) (88) 214 (47) 31 17 1 (195) 8 (36) (223) (8) 70 62 220 42 (83) (13) (8) (72) 86 (63) 0 8 (55) (1) 29 (77) (49) (17) 62 45 319 46 38 12 (15) (104) 296 (76) 0 15 (61) (0) (6) 46 (91) (51) 184 45 229 459 54 (119) (37) (143) 215 (150) (4) 37 (117) (25) 40 (65) 33 229 262 541 62 (91) (45) (173) 294 (500) (6) 45 (460) 40 (40) (206) 262 56

January 31, 2013

Amara Raja Batteries | 3QFY2013 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) 0.4 1.0 6.7 0.0 0.0 31.0 0.0 0.1 70.5 (0.2) (0.5) 75.7 (0.2) (0.5) 197.7 (0.0) (0.0) 187.8 3.6 49 60 30 86 3.2 47 56 35 65 3.4 52 57 38 61 4.1 43 48 31 49 4.3 39 49 31 44 3.5 40 49 31 49 19.6 22.7 21.8 35.9 42.5 33.5 30.3 30.6 24.9 35.9 44.0 29.3 39.7 46.5 32.9 36.7 34.6 29.1 10.3 0.7 2.2 14.8 4.4 0.7 22.6 16.8 0.7 2.5 27.5 2.8 0.3 34.9 12.2 0.7 2.7 22.6 2.3 0.1 23.9 13.0 0.7 3.4 29.6 3.1 (0.2) 24.6 14.2 0.7 3.7 36.3 2.1 (0.4) 21.2 14.4 0.7 3.0 28.8 3.1 (0.1) 25.1 4.7 4.7 6.7 0.4 23.7 9.8 9.3 11.8 1.5 31.8 8.7 8.7 11.1 2.3 37.8 12.6 12.6 15.3 1.9 48.2 18.5 18.5 21.7 2.0 64.4 21.6 21.6 25.2 2.0 83.6 65.3 45.7 13.0 0.1 4.1 32.1 7.6 31.5 26.0 9.7 0.5 3.6 18.3 8.0 35.5 27.7 8.1 0.7 3.0 20.5 6.9 24.4 20.1 6.4 0.6 2.2 14.4 5.4 16.6 14.2 4.8 0.6 1.7 10.5 4.2 14.3 12.2 3.7 0.6 1.5 9.3 3.4 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

January 31, 2013

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Amara Raja Batteries | 3QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Amara Raja Batteries No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

January 31, 2013

11