Amara Raja Batteries Up By 7%; Records Highest Net profit In Q2

BW Online Bureau Nov 11, 2019

Amara Raja Batteries Limited has reported a revenue of Rs 1695.31 crores in Q2 FY 20 (Rs 1753.05 crores) with the growth of (3%) and profit after tax (PAT) of Rs. 218.85 crores (Rs 120.23 crores). This represents the highest ever profits reported in a quarter by the company. The Earnings Per Share (EPS) for Q2 FY 20 was at Rs.12.81.

The Board of the Directors of the Company approved the unaudited financial results for the quarter and half year ended September 30, 2019, and declared an amount of Rs. 6/- per equity share (representing 600%) on the face value of Re. 1/- each as interim dividend for the financial year 2019-20

Both automotive and industry battery businesses have recorded healthy volume growth during the quarter barring Automotive OE segment. The demand for AMARON and POWER ZONE brands in a registered significant uptick in replacement market in 4 wheeler as well as 2 wheeler segments.

Commenting on the Q2 performance, Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “While we are encouraged by the continued growth of our brands in replacement markets in both domestic and international markets, we are cautiously evaluating the trends in OE segment and calibrating our investment plans appropriately. We believe that continued technology up-gradation and widening product portfolio to meet emerging customer needs will help us navigate through the demand cycles and sustain our growth momentum”

S. Vijayanand, CEO, Amara Raja Batteries Limited commented, “Continued engagement with our key customers is helping us align with their strategic plans and collaborate to implement product enhancements and cost optimizations. This helped us gain a higher share of business with customers across Telecom, UPS and automotive OE segments. Investments in digital transformation projects and capacity additions are progressing as per plan. The quarter also helped us improve our cash flows due to lower inventory costs on account of softer commodity prices”