Amara Raja Batteries Ltd on Friday reported a 28 per cent decline in consolidated net profit to Rs 144.32 crore in the second quarter ended September 30, 2021, impacted by a rise in input costs.
The company had posted a consolidated net profit of Rs 201.27 crore in the same period last fiscal, Amara Raja Batteries Ltd said in a regulatory filing.
Its consolidated revenue from operations during July-September 2021 stood at Rs 2,264.15 crore as against Rs 1,935.52 crore in the year-ago period, it added.
Total expenses stood at Rs 2,097.17 crore, higher as compared with Rs 1,676.03 crore a year ago.
The cost of materials consumed was also higher at Rs 1,484.82 crore, against Rs 1,119.75 crore in the year-ago period.
Commenting on the performance, Amara Raja Batteries Chairman, Managing Director & CEO Jayadev Galla said, "The demand signals are positive across all product segments but the increased input material costs are driving the margins negatively."
He further said, "We will continue to focus on cost optimisation and work towards improving the operating margins. We are working on our new energy strategy to participate in the emerging opportunities in the new chemistries and have started our Lithium battery pack supplies for three wheeler application."
The company said its automotive revenues in the quarter have grown on the back of a robust demand from aftermarket across all product segments.
Industrial volume growth was stable across all segments particularly the UPS business registered higher volume growth, it added.
Challenges around the supply chain are still persisting in select export markets and the increased raw material prices are affecting the margins, it added.
Amara Raja Batteries said its board of directors at their meeting held on Friday has declared an interim dividend of Rs 4 per equity share, representing 400 per cent, on the equity share of Re 1 each for the financial year 2021-22, and it will be paid on or before December 11, 2021.
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