Amara Raja's Q2 net up 6%, to set up tubular batteries' unit

The company's turnover increased 32% to Rs 1,065 cr

Amara Raja Batteries Limited, a maker of lead acid storage batteries for industrial and automotive applications, reported a 6% rise in net profit at Rs 100.30 crore for the quarter ended September 2014, compared with a profit of Rs 94.58 crore in the corresponding quarter previous year.

The company's turnover increased by 32% to Rs 1,065.59 crore from Rs 807.12 crore in the same period.

During the first half of the current financial year, Amara Raja's income from operations and net profit stood at Rs 2,094.62 crore and Rs 206.26 crore respectively. The company's board had approved setting up of a plant for manufacturing tubular batteries.

According to the company, the automotive battery business continued to maintain its growth trend both in two-wheeler and four-wheeler batteries. The industrial battery business registered double digit volume and revenue growth aided by optimal product mix and strong demand for the company's products. While the demand from telecom sector continues to be robust, the demand for UPS batteries witnessed a moderate growth.

"We are delighted to report the continuing growth momentum of the company that is reflected by the highest revenue and profit for a quarter. The green field expansion project of four-wheeler automotive batteries facility, the project for addition of two lines for expanding two-wheeler batteries capacity are progressing well and the proposed project for tubular battery manufacturing facility which was approved at the board meeting held today will support to accelerate the growth momentum and secure us additional market share in the near future", Amara Raja vice chairman and managing director, Jayadev Galla, stated in a press release.