Amara Raja Batteries retracts from record high on profit booking

Meanwhile, the BSE Sensex was up 22.84 points or 0.11% at 20,013.74.

On BSE, 76,000 shares were traded in the counter as against average daily volume of 89,535 shares in the past one quarter.

The stock hit a high of Rs 328 so far during the day, which is a record high for the counter. The stock hit a low of Rs 304.30 so far during the day. The stock had hit a 52-week low of Rs 101 on 30 January 2012.

The stock had outperformed the market over the past one month till 29 January 2013, surging 33.31% compared with the Sensex's 2.81% rise. The scrip had also outperformed the market in past one quarter, jumping 43.95% as against Sensex's 7.27% surge.

The mid-cap company has equity capital of Rs 17.08 crore. Face value per share is Re 1.

Amara Raja Batteries stock had surged 13.19% in four trading sessions to settle at Rs 321.80 on Tuesday, 29 January 2013, from a recent low of Rs 284.30 on 23 January 2013. The stock had jumped 6.73% in a single trading session to settle at Rs 321.80 on Tuesday, 29 January 2013, after the company reported strong Q3 results after trading hours on Monday, 28 January 2013.

Amara Raja Batteries' net profit jumped 22.7% to Rs 80.91 crore on 23.6% growth in net sales to Rs 756.87 crore in Q3 December 2012 over Q3 December 2011.

Amara Raja Batteries said that the Automotive battery business reported strong double digit growth both in volumes and revenue in Q3 December 2012 despite depressed OE demand and capacity constraints in automotive 4W batteries during the quarter. The strong growth in volumes of 4-wheeler and 2-wheeler batteries was supported by focused action around the brand, channel and customer relationship, the company said. The consumer preference for brand Amaron and PowerZone continues to provide market share gain in aftermarket due to its product offering coupled with endurance and quality, Amara Raja said. With aftermarket demand expected to pick up in FY 2014, the company expects to grow above the industry average in the near future. The company is all set to commence supply of 2W batteries to OEMs in couple of months. The pan-India consumer response to Amaron and PowerZone branded Home UPS products has been very promising and this business will aid in revenue and profit growth of the company in the years to come, Amara Raja said in a statement.

The industrial battery business has reported double digit revenue growth enabled by improved demand from telecom market and reasonable volume growth both in telecom and UPS segments, Amara Raja said. The company could not fully capitalize on the growing demand and preference for its telecom (PowerStack) and UPS (Quanta) batteries for want of capacity. The company continues to enjoy preferred supplier status with telecom and UPS customers and would further fortify this position by providing end-to-end solutions and leveraging its reach through partners in the business, Amara Raja said. The MVRLA capacity expansion is progressing as per schedule and is confident of meeting the growing demand from the new plant effective Q3 of the next financial year, Amara Raja said. The company has secured consent of the board to expand Large VRLA product line capacity to cater to growing demand in telecom in the near future and to exploit export opportunities in the long run.

Amara Raja Batteries' board of directors at a meeting held on Monday, 28 January 2013, approved capital expenditure (capex) of Rs 440 crore to augment manufacturing capacities of Large VRLA and Four Wheeler batteries.

Amara Raja Batteries 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 the preferred supplier to major telecom service providers, telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. Amara Raja is a leading manufacturer of automotive batteries under the brands Amaron and PowerZone, which are distributed through a large pan-India sales & service retail network. The company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The company's Industrial and Automotive batteries are exported to Asia Pacific, Africa and Middle East.

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