Karachi, Atlas Battery Ltd. (ATBA) held its analyst briefing today, unveiling the FY23 financial outcomes and sharing the company's forward-looking vision, as reported by AKD Securities Limited. ATBA reported a notable earnings increase in FY23, achieving PkR2.2bn, a significant surge from the prior year's PkR0.7bn.
This considerable earnings growth is largely credited to a boost in volumetric sales and a significant uptick in product prices over the past year, exceeding 50%.
A bulk of ATBA's revenue, between 90-95%, stems from the replacement market, while OEMs contribute the remaining portion. In a breakdown of customer distribution, between 55-60% of sales are directed towards the UPS and solar sectors, and the balance caters to the automotive industry.
The company's increase in inventory from the previous year is associated with rising raw material expenses and an extended imported raw material inventory holding duration - a precaution against potential import constraints.
Notably, about 85% of ATBA's raw materials are sourced domestically, with "Lead" being primarily obtained locally. Yet, local lead prices are susceptible to global commodity price oscillations and currency exchange rate shifts.
ATBA has recently introduced five new batteries to the market, of which two cater to automobiles and three are for bikes. Additionally, the company offers a diverse range of maintenance-free batteries tailored for local vehicles, ranging from 660cc to 3,500cc. With a commitment to growth and a goal to establish a dominant market presence, ATBA currently stands as the second-largest in market share, following "Osaka."