Amara Raja Batteries limited reports record growth in revenues for Quarter ending September 30th 2018
Deepthi | Myequity news | Date : 09-11-2018 16:55:00 IST
Amara Raja Batteries limited, India's leading Industrial and Automotive Battery major today reported revenue of Rs 1,753 crore in Q2 FY 19 (Rs 1,427 crores) with a growth of 23 % and profit after tax of Rs. 120 crores (Rs 127 crores). The Earnings Per Share (EPS) for Q2 was at Rs. 7.04.
The Automotive battery business has achieved strong volume growth primarily driven by growth in exports and original equipment segment. During the quarter, demand for batteries in the motor cycle segment has been uniquely encouraging. Brand AMARON continues to perform exceptionally well in the four wheeler and two wheeler segment, with wider market reach and dynamic product portfolio management. Buoyed by the vibrant growth in the overall automobile industry, the Automotive battery business registered noticeable increase in market share in the current quarter.
The Industrial battery business saw robust double digit growth across segments in terms of volume and market share. The Telecom industry continues to be under financial stress resulting in demand uncertainty for batteries.
Board of Directors today approved a total Capital investment of Rs 540 Cr for the deployment of advanced stamped grid technology which will enable offering high performance batteries to meet our customers' present and future needs. This investment is an important mile stone in the process of development of advanced lead acid batteries."
Commenting on the Q2 performance, Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited
said, "The Indian automotive sector is experiencing robust performance and we are buoyant about the continued growth prospects. We are carefully watching the global and domestic macroeconomic factors to aggressively pursue opportunities in domestic as well as international markets. We continue to invest in the brand, technology and manufacturing capacities in tandem with our long term growth objectives." S. Vijayanand, CEO, Amara Raja Batteries Limited
commented, "Both the automotive and industrial volume growth during the current quarter has been encouraging and is supported by significant growth in export volumes. While lead prices have softened in the recent months, rupee depreciation has put pressure on input costs. We are prioritizing on improving operational efficiencies, cost reduction and technology upgradation. All our capacity expansion programs are on track".
About Amara Raja Batteries Limited:
A company with 26% equity each from the Galla Family and Johnson Controls Inc., USA, Amara Raja Batteries Limited is the technology leader and one of the largest manufacturers of lead- acid batteries for both industrial and automotive applications in the Indian storage battery industry.