Amara Raja Batteries Ltd has posted a lower net profit of Rs 112.32 crore for the third quarter ended December 31, 2016 against a profit of Rs 136.32 crore in the corresponding quarter last year.

The batteries major registered gross sales of Rs 1,502 crore during the third quarter, up 9.7 per cent, over Rs 1,369.54 crore it logged during the corresponding quarter last fiscal.

Jaydev Galla, Vice-Chairman and Managing Director, Amara Raja Batteries, said, “Our year to date volume and revenue growth is in line with our plan in both automotive and industrial applications. Continuous improvements in operational efficiencies are supporting the management efforts in remaining aggressively competitive.”

“Demonetisation of high value currency and a sharp increase in raw material prices during the quarter had a moderate impact on the quarter results and we believe that the market conditions would get restored to normalcy very soon,” he said.

For the nine months ended December 31, 2016, the company registered a gross income of Rs 4,491.48 crore (Rs 3,919 crore same period last year) and posted a profit of Rs 379.30 crore (Rs 382.57 crore).

The company stated that the automotive battery business continued to maintain overall growth trend. Demonetisation impacted in varying proportions across segments.

Expansion of the four-wheeler battery capacity is expected to be commissioned in the next quarter.

The industrial battery business registered a healthy growth in Q3 in challenging and competitive market conditions.

Trent Moore Nevill was appointed as an additional director to hold office up to the ensuing annual general meeting consequent to resignation of Shuqing Yang from the board.

The company shares were trading at Rs 870.95, down 3.48 per cent during the day on the BSE.