Amara Raja Batteries posts Rs 134 cr net profit

Amara Raja Batteries Ltd has posted a net profit of Rs 134.45 crore for the third quarter ended December 31, 2017 against a profit of Rs 112.32 crore in the corresponding quarter last year.

The company’s income stood at Rs 1,570 crore during the December quarter against Rs 1,513 crore in the same period previous fiscal. For the nine months ended December 31, 2017, the company posted a net profit of Rs 361.52 crore and an income of Rs 4,694.91 crore.

Interim dividend of Rs 2 per equity share of face value of Re 1 each, approved by the board of directors of the company during the meeting held on November 9, 2017 was paid during the quarter.

Jaydev Galla, Vice-Chairman and Managing Director of Amara Raja, said, “Since current capacity utilisation is nearing peak in most product lines, investment in capacity expansion is helping us meet the growing demand. We continue to focus on building capabilities to address the emerging and future opportunities in energy storage and EV space.”

Amara Raja Batteries said robust growth numbers reported from the auto sector augurs well for the company. It has strengthened its position both in the original equipment and replacement market segment. However, the continued escalation of lead prices remains a cause for concern and was partially offset by pricing action.

The automotive battery business clocked a healthy volume growth and both the brands Amaron and Power Zone brands continue to grow on the back of channel expansion initiatives.

Exports to South East Asia and West Asian countries have also increased significantly year-on-year. Industrial battery business recorded a significant growth in UPS segment, and the volumes in telecom segment have seen a jump over the previous quarter. However, demand in telecom sector continues to be subdued.

Amara Raja shares ended higher by 5.82 per cent at Rs 844.95 on the BSE.