Amara Raja Energy Q4 results: Net profit rises nearly 62% to Rs 228 crore
Illustration: Ajay Mohanty
Indian battery maker Amara Raja Energy & Mobility posted a rise in quarterly profit on Tuesday, helped by strong demand for its batteries from the automobile companies.
The company’s standalone net profit rose nearly 62% to Rs 228 crore ($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% 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% to Rs 2,797 crore, boosted by a 19% 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%, led by increased inventory purchases. Raw material costs, including lead, a key input for battery makers, rose 2%.
Rival battery maker Exide Industries beat its fourth-quarter profit estimates last month.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: May 28 2024 | 7:33 PM IST