Hyderabad: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT) 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 Board of the Directors of the Company, which met today, approved the unaudited financial results for the quarter and half year ended September 30, 2018 and declared an amount of Rs. 2.00/- per equity share (representing 200%) on face value of Re. 1/- each as interim dividend for the financial year 2018-19
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”.
