Amara Raja Energy & Mobility Ltd

- The company is currently drawing a comprehensive financing plan considering various factors. - For the next couple of years, they plan to mobilize finance through the holding company. - Initial capex burden between this year and part of next year is expected to be taken on the holding company's balance sheet using free cash generation. - Post that, the business will need to find its own way of funding growth. - They are exploring debt or equity plans to fund growth but have noted that JV or equity investment from China is unlikely due to current restrictions. - There is no immediate plan for JV equity participation; focus remains on partnerships primarily for technology and supply chain linkages. - The company expects healthy free cash flow to support initial capex but may consider debt or other funding for larger scale expansion later.

- INR 1,500 crores capex planned for 2 GWh lithium-ion cell capacity, primarily in FY '25 and FY '26. - Longer-term plan involves expanding to 16 GWh capacity with total capex of around INR 9,500 crores. - Initial capex burden expected to be taken on holding company balance sheet; future growth funding may be through debt or equity. - INR 300-400 crores capex expected for lead-acid battery business in FY '25. - Recycling plant with 150,000 tonnes annual capacity being set up to cover ~35% of lead requirement, improving supply chain sustainability. - Capex also allocated to New Energy business (battery packs, EV chargers) and regular lead-acid battery operations. - Expansion focused on lithium-ion cell tech, supply chain linkages, and sustainable resource sourcing. - Commercial sales from cell manufacturing expected to start from FY '27 onward.

- Lead-acid battery business expected to plateau with stable to modest growth: - Automotive aftermarket growth: mid- to high-single digits in India; low single digits in Western markets. - Lead-acid auxiliary battery for EVs has a ~10-year runway. - Industrial segment growing at 6-7% annually. - New Energy business (battery packs, chargers) showing strong growth: - Over 30% growth in recent year. - Expansion in telecom, 3-wheeler, and 2-wheeler battery packs. - Lithium-ion battery cell capacity ramping up, with commercial sales anticipated from FY '27. - Industrial UPS lead-acid still growing; lithium gaining share in data centers. - Aftermarket 2-wheeler and 4-wheeler volumes growing at 15-19%. - International markets growing ~30%, driven by new geographies (APAC, Middle East). - New lubricant business targeting INR 150+ crore revenue in FY '25.

- Lead-acid battery automotive market: Expected plateau with mid-to-high single-digit growth in India (from high double digits), low single-digit growth in Western markets; runway remains for ~10 years, especially for auxiliary batteries in EVs. - Industrial segment: Moderate growth around 6-7% annually, with opportunities in telecom and UPS sectors. - New Energy business (lithium-ion batteries and related products): Strong growth trajectory, currently doubling year-over-year; cell manufacturing commercialization targeted from FY '27. - Margin improvements expected from integration (e.g., Mangal Industries) with potential 1%+ upside in EBITDA margin. - Recycling operations to increase recycled lead supply to 85-90%, aiding cost optimization. - Capex investment (INR ~1,500 crores for 2 GWh cell capacity; INR 9,500 crores planned for 16 GWh) supported by free cash flow, holding company funding, and potential debt. - Overall, earnings growth linked to balanced lead-acid business plateauing, offset by rapid new energy expansion and efficient capital deployment.

The transcript does not provide specific details on the current or expected order book or pending orders for Amara Raja Energy & Mobility Limited. However, the following relevant points can be inferred: - The company is having multiple ongoing discussions with OEMs across 2-wheelers, 4-wheelers, and telecom players for battery cell and pack supplies (Page 20). - There is healthy growth and increasing demand in battery packs, chargers, and aftermarket sales (Page 5, 6, 20). - New cell manufacturing facility is in the customer qualification stage, with commercial sales expected around FY 2027 (Page 19). - The company has expanded into new international markets, accelerating volume growth and market share (Page 5). - No explicit mention of a quantified order book or backlog in the call transcript. For detailed order book figures, investors may need to refer to official quarterly reports or company disclosures.