Amara Raja Batteries tanks on disappointing Q4 earnings

Q4 net profit grew 2.2% year-on-year at Rs 60 crore due to higher depreciation and amortization expenses.

Amara Raja Batteries has tanked 10% to Rs 253 in early morning deals on NSE  after reporting a marginal 2.2% year-on-year (yoy) rise in net profit at Rs 59.60 crore for the quarter ended March 31, 2013 (Q4), due to higher depreciation and amortization expenses. The auto parts and equipment makers had reported a net profit of Rs 58.29 crore in a year ago quarter.

Net sales however, increased by 19% to Rs 801 crore on y-o-y basis on account of  volume increase of 20% in 4 wheeler and 37% in 2 wheeler batteries, over the previous financial year.

During the quarter under review, the company’ depreciation and amortization expenses surged over two-fold at Rs 26.73 crore against Rs 12.22 crore in the corresponding quarter of previous fiscal.

The stock opened at Rs 267 and touched low of Rs 252 on NSE. A combined around 190,000 shares changed hands on the counter so far on NSE and BSE.