Amara Raja Batteries hits record high

Amara Raja Batteries rose 3.28% to Rs 514.45 at 14:04 IST on BSE after net profit rose 8.16% to Rs 106 crore on 15.55% growth in net sales excluding other operating income to Rs 1025 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced during market hours today, 6 August 2014.

Meanwhile, the S&P BSE Sensex was down 88.09 points or 0.34% at 25,819.92.

On BSE, so far 1.47 lakh shares were traded in the counter as against average daily volume of 25,896 shares in the past one quarter.

The stock hit a high of Rs 520.40 so far during the day, which is a record high for the counter. The stock hit a low of Rs 494.35 so far during the day. The stock had hit a 52-week low of Rs 207.75 on 7 August 2013.

The stock had outperformed the market over the past one month till 5 August 2014, advancing 0.42% compared with the Sensex's 0.21% fall. The scrip had also outperformed the market in past one quarter, jumping 22.87% as against Sensex's 15.43% rise.

The mid-cap industrial and automotive battery maker has equity capital of Rs 17.08 crore. Face value per share is Re 1.

Amara Raja Batteries (Amara Raja) said that the Automotive battery business continued to maintain the growth momentum in four wheeler batteries backed by improved aftermarket sales arising out of strong preference for our brands Amaron and PowerZone. The significant volume growth in two wheeler batteries (Amaron ProbikeRider) has added to the performance of the business unit. During the quarter, the company has commenced supplies of two wheeler batteries to Honda Motors India, for their plant in Karnataka. The trading in tubular batteries and home UPS under private label program has sustained the momentum during the quarter, despite unfavourable demand conditions, Amara Raja said. The capacity expansion undertaken by the company is in advanced stages of completion which would enable the company, to meet future demand and enhance the market share, Amara Raja said in a statement.

The Industrial Battery business registered double digit volume and revenue growth aided by newly added capacities both in LVRLA and MVRLA product ranges, optimal product mix and strong demand for company's products, Amara Raja said. The demand from telecom sector continues to be robust and is primarily for replacement, it added. The demand for UPS batteries too is showing signs of improvement, Amara Raja said in a statement.

The continuing strong performance of industrial battery business is because of its "preferred supplier status" with all major customers, backed by timely supplies, efficient after sales service, customer relationship management and consistent product performance, Amara Raja said. The company has progressively started providing total solutions to customers enabling it to forge strategic alliances and gain service revenue stream, Amara Raja said in a statement.

The investments in capacity expansions made during last year, will ably support the growth plans of the industrial battery business during the current year, Amara Raja said in a statement.

Commenting on the Q1 performance, Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries said, "We are delighted to report the highest revenue and profit for a quarter. The green field expansion of automotive battery facility would accelerate the growth momentum and enhance market share".

Commenting on the Q1 performance, Mr. S V Raghavendra, Chief Financial Officer, said, "The company continues to have sequential quarterly growth and the financial position of the Company is healthy."

Amara Raja Batteries, a company with 26% equity each from Galla Family and Johnson Controls Inc, USA, is the technology leader and is one of the largest manufacturers of lead acid batteries for both industrial and automotive applications in the Indian storage battery industry. Amara Raja is a leading manufacturer of automotive batteries under the brands - Amaron and Powerzone.

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