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Amara Raja Batteries posts Q1 net profit growth of 13pct

Auto News - Published on Mon, 13 Aug 2018

Image Source: Chart Advise
Economic Times reported that on the back of strong sales of new vehicles and growing demand from replacement market, Amara Raja Batteries Limited reported net revenue of INR 1779 crore in Q1 FY 19. The company posted a growth of 19% when compared to INR 1,497 crores in the same quarter of last fiscal year. The company posted a profit after tax of INR 113 crores at growth rate of 13%.

The Automotive battery business has achieved strong volume growth across its business segments. Sales to OE customers grew at a rate higher than that of new vehicles. During the year demand for batteries in the replacement market saw growth in all vehicles categories, including two-wheelers.

Both the preferred brands, Amaron and Powerzone, continued to perform exceptionally well, thereby increasing market share. South-east Asia & Middle-east contributed to phenomenal growth in our international business.

Hwoever, the demand from Telecom segment continues to be under stress owing to overall Telecom scenario prevailing in the market. Barring this all other segments of the Industrial business registered double digit growth.

Commenting on the Q1 performance, Mr Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said,” The economy of the country is poised to grow and provide opportunities for increasing production and consumption. In line with the growth and demand expectations we are expanding capacities and adapting new technologies well in time”.

Mr S Vijayanand, CEO, Amara Raja Batteries Limited commented that “We are encouraged by the significant growth across all businesses in domestic as well as export volumes both in automotive and industrial products. The ongoing capacity expansion program and regular capex with investment of Rs 500 crores for the current financial year are on track and the board has now approved an investment of Rs 700 Crores to set up a new green field automotive battery plant with a capacity of 6.5 Mn units per annum. This project will be implemented over three phases”.

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Posted By : Joykumar Irom on Mon, 13 Aug 2018
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