- OEM volumes remained muted in 2QFY22, while Replacement volumes showed reasonable growth (11%/20% YoY for 4W/2W). Exports declined by 8-9% YoY due to logistical challenges. Volumes in the Industrial segment grew 11% YoY, with a broad-based growth.
- ASP growth stood at 7-8% on a YoY basis, driven by price increases to pass on the cost inflation in key raw materials. It undertook a cumulative price hike of ~6% over Jul-Sep’21 in the Replacement market.
- Lead cost was up by 20-22% YoY and 9% QoQ. Spot rates are almost 6.5% higher than its 2QFY22 average.
- It has started supplying lithium battery packs to 3W OEMs. It has also started supplying chargers to BPCL and is developing an onboard charger for 2W/3W applications.
- The contribution of the new energy business stood at INR200m in 2QFY22.
- It is increasing its 4W capacity to 16m by mid-FY23.
- FY22 CAPEX is pegged at INR5-5.5b (1H: ~INR3b) for 4W capacity expansion and a 50MW solar plant. AMRJ is yet to finalize its lithium battery plans.
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