Amara Raja Batteries Q4 net surges 28%

Amara Raja Batteries today reported a 27.74 per cent increase in net profit at Rs 102.26 crore for the quarter ended March 2015.

The company had posted a net profit of Rs 80.05 crore in the same period of the previous fiscal.

Net sales during the period under review stood at Rs 1,066.7 crore as against Rs 885.14 crore a year ago, up 20.51 per cent.

The board has recommended a dividend of Rs 3.61 per share (face value of Re 1 each) in line with the declared policy of distributing up to 15 per cent of profits, subject to the approval of shareholders at the upcoming annual general meeting, the company said in a statement.

For the entire 2014-15, net profit came in at Rs 410.86 crore as against Rs 367.44 crore in the previous year, up 11.81 per cent.

Net sales during 2014-15 stood at Rs 4,211.33 crore as against Rs 3,436.66 crore in 2013-14, up 22.54 per cent.

Vice-Chairman and Managing Director Jayadev Galla said: "We are pleased to report yet another highest-ever sales and profit for the company for 2014-15... The company's industrial and automotive battery units have reported double-digit revenue growth and gained market share."

Amara Raja Batteries Chief Financial Officer S V Raghavendra said the company continued to enjoy debt-free status and has free cash available to the tune of over Rs 220 crore at the end of the financial year.

The capacity enhancement for the 4-wheeler battery business has been completed and production has commenced in the past quarter of the year, he added.

"Further, expansion of 2-wheeler battery capacity and the greenfield tubular battery plant are in progress as per the plan. All project costs are well within the approved costs. Continuing debt-free status and sound credit rating of the company will help us leverage, as and when required, at minimal cost," Raghavendra said.

On outlook, Galla said: "We remain cautiously optimistic of the company's performance in the coming year against the backdrop of continuing uncertainty in macro-economic condition, escalating costs and probable supply constraints."

Amara Raja Batteries was trading at Rs 884 in the mid-day trade, up 2.02 per cent, from its previous close on BSE.