Amara Raja’s revenue grew nearly 15% to 27.97 billion rupees, boosted by a 19% rise in the company’s lead-acid batteries and allied products segment,
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Indian battery maker Amara Raja Energy & Mobility posted a rise in quarterly profit on Tuesday, helped by strong demand for its batteries from automobile companies.
The company’s standalone net profit rose nearly 62 per cent to 2.28 billion rupees ($27.4 million) in the three months to March 31, still shy of analysts’ average estimate of 2.33 billion rupees, according to LSEG data.
The automobile industry’s requirement for batteries rose in the quarter as vehicle production increased more than 21 per cent year-on-year, according to data from industry body Society of Indian Automobile Manufacturers (SIAM).
Amara Raja has top automakers, including Maruti Suzuki, Tata Motors, and Hero MotoCorp, as its clients.
Revenue grew nearly 15 per cent to 27.97 billion rupees, boosted by a 19 per cent rise in the company’s lead-acid batteries and allied products segment, which accounts for nearly all its revenue.
The segment also includes its industrial business, which benefitted from the expansion of India’s 5G network, as Amara Raja also supplies batteries to telecom equipment manufacturers.
The company’s expenses rose nearly 14 per cent, led by increased inventory purchases. Raw material costs, including lead, a key input for battery makers, rose 2 per cent.
Rival battery maker Exide Industries beat its fourth-quarter profit estimates last month.
First Published Date: 29 May 2024, 07:05 AM IST