Amara Raja Q1 net down 24% to Rs 100 cr over hike in material costs

There was a sharp 25% rise in the cost of materials during the quarter under review

Amara Raja Batteries Limited has reported a 23.58 per cent decline in net profit at Rs 99.85 crore for the quarter ended June 2017 due to a steep rise in the cost of materials, besides other expenditure. The company's net profit stood at Rs 130.53 crore in the corresponding quarter last year.

The automotive battery maker registered a 15 per cent growth in total income at Rs 1,686.96 crore for the quarter under review, as compared to Rs Rs 1,465.28 crore in the year-ago period.

However, the total expenditure grew 20.37 per cent to reach Rs 1,534.24 crore in the quarter under review, from Rs 1,274.53 crore in the corresponding quarter of the previous year. There was a sharp 25 per cent rise in the cost of materials during the quarter.

The scrip was trading at Rs 825, more than 2.4 per cent or Rs 19.35 over the previous day's closing price of Rs 805.65, on the BSE after the announcement of the results during the afternoon.