Amara Raja charts Rs 100-cr 2-wheeler battery capacity expansion

Meanwhile the company has reported a net profit of Rs 70.1 crore for the second quarter ended September 2012

Industrial and automotive battery manufacturer, Amara Raja Batteries Limited, is planning to expand its two-wheeler battery capacity with an investment of Rs 100 crore. The company has received its board approval for the same.

“The company is on course to enter the OEM (original equipment manufacturer) 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 company said in a press release.

Amara Raja, which currently has a market capitalisation of Rs 3,800 crore, reported a net profit of Rs 70.1 crore for the second quarter ended September 2012, as compared to Rs 51.8 crore during the same period a year ago, reflecting a growth of  37.9%.  Net sales grew 27.5% to Rs 714.8 crore during the quarter, as against Rs 560.3 crore in the corresponding quarter last year.

“We continue to enjoy debt-free status with fresh cash of over Rs 340 crore as on September 2012. The capacity expansion programmes are progressing as per schedule and will aid the company’s growth plans for the next two years,” said K Suresh, chief financial officer of Amara Raja Batteries.

Amara Raja Batteries’ scrip is currently trading at Rs 236.50 on the BSE, up 5.79%, over the previous close of Rs 223.55 a share.