Boosted by good performance by automotive and industrial segments, Amara Raja Batteries Ltd has recorded net profit of Rs 70.1 crore for the second quarter ended September 30, 2012, against Rs 51.8 crore for corresponding quarter last year.
The net sales (excluding other income) for the second quarter was Rs 714.8 crore against Rs 560.3 crore for the corresponding quarter last year, thereby registering a growth of 28 per cent.
The profit before tax for the quarter was Rs 101.8 crore (Rs 76.1 crore), a growth of 34 per cent.
The automotive battery business reported strong growth both in volume and value despite muted demand in the OE segment of four-wheeler batteries. The growth in volumes of four-wheeler and two-wheeler batteries was primarily due to continuing momentum in all formats of aftermarket.
The trading in tubular batteries and home UPS {+ }private label programme has sustained the impetus during the quarter, aided by strong demand.
The company is on course entering into OEM business with two-wheeler manufacturers and is going ahead with the expansion of manufacturing capacity to cater to the demand in the near future.
The industrial battery business has reported a marginal growth in volume enabled by good demand from the telecom sector.
Commenting on the company performance, Jaydev Galla, Managing Director of Amara Raja Batteries, said, “Our performance is in line with our expectations despite the fact that there has been slowdown in the automotive OEM sector.”
K. Suresh, Chief Financial Officer, said, “We continue to enjoy debt free status with cash of Rs 340 crore as on September 30, 2012. The capacity expansion programmes are progressing as per schedule and will aid the company’s growth plans for the next two years.”
The market capitalisation of the company now stands at over Rs 3,800 crore aided by company’s performance and liquidity created by the recent sub-division of face value of equity shares from Rs 2 per share to Re 1 each effective September 26, 2012.
The company board has approved expansion of two wheeler battery capacity with an investment of Rs 99.8 crore.
Shares of batteries major Amara Raja Batteries Ltd gained significantly during the day’s trade on the BSE. The company shares gained by 8.83 per cent during the day’s trade quoting at Rs 243.30 against the previous close of Rs 223.55.