Amara Raja Batteries extend gains on strong Q1 earnings

The stock rallied 27% in past two trading days

Amara Raja Batteries has rallied 11% to Rs 404, extending its Tuesday’s 15% surge on back of huge volumes.

The stock opened at Rs 374 and hit a record high on the NSE. As many as a combined 1.36 million shares have already changed hands on the counter in early morning trades, against an average around 220,000 shares that were traded daily in past two weeks on the NSE and BSE.

The auto parts and equipment maker, on Tuesday reported a robust 95% year-on-year (yoy) jump in net profit at Rs 76 crore for the quarter ended June 30, 2012 on back of higher sales. Total operational income grew 32% at Rs 694 crore on y-o-y basis.

Operating profit jumped 75% to Rs 119 crore form Rs 68 crore in a year ago quarter, while margins improved by 500 basis points to 18.07% due to lower lead prices during the quarter under review.

Meanwhile, the board has approved the expansion / setting up of a plant for manufacture of four wheeler batteries at a capital outlay of Rs 14 crore.