Amara Raja Q3 net rises 18% on demand uptick

Amara Raja Batteries’ (ARBL) consolidated net profit rose 18% to ₹193.69 crore for the quarter ended December, from the year-earlier period, following a revival in demand across key sectors of the business.

The increase in profit came on a more than 13% rise in total income to ₹1,995.63 crore. The company has declared an interim dividend of ₹5 per equity share (face value of ₹1).

In the automotive segment, the revenue growth was aided by consistent growth in OEM and aftermarket segments. The export segment also registered robust growth. The telecom and commercial UPS market segments recorded a strong growth in the third quarter. Manufacturing capacities were fully ramped up for optimum utilisation across all segments, according to a statement.

The firm would set up a greenfield, lead-recycling unit with a capacity of one lakh tonnes. Total capital outlay is expected to be ₹280 crore, to be spent over the next 18 months.

The project would help the company comply with recycling standards while adopting advance technology in the most environmentally-friendly manner.

A 50 MW solar power plant in Chittoor district of Andhra Pradesh with an outlay of ₹220 crore is being established by ARBL. This will further reduce the cost of power and simultaneously bring down the carbon footprint of the company, the release said.

“The rebounding of the economy is improving the prospects of various market segments, especially those in which we are operating.” said Jayadev Galla, vice-chairman and MD.

Noting that the Centre had recently announced many initiatives and PLI schemes, which would accelerate growth of e-mobility and renewable energy markets, he said the company is assessing the investment opportunities in advanced and futuristic energy storage technologies.

CEO S. Vijayanand said, “we are going forward with strategic investments focused on improving operational efficiencies, cost optimisation and technology upgradation.” The planned investments in solar and lead recycling plants will further strengthen would aid reducing costs and provide long term support to key raw material procurement, he added.

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