Automobile battery maker Amara Raja Batteries Limited is investing Rs 5.4 billion for the deployment of advanced stamped-grid technology, which will allow it to offer high-performance batteries to meet its customers' present and future needs. The company termed this investment as an important milestone in the process of development of advanced lead-acid batteries.
The announcement comes amid a strong volume growth, primarily driven by the export and original equipment segments.
The board of directors of the company, which met on Friday to approve the financial results for the quarter ended September 2018 has approved the capex for the deployment of new technology.
Amara Raja Batteries has reported a 5.5 per cent decline in net profit to Rs 1.2 billion for the quarter ended September 2018, from Rs 1.27 billion in the corresponding quarter previous year. A steep rise in the cost of materials dented profitability during the quarter under review, despite a healthy top-line growth. While lead prices have softened recently, rupee depreciation has put pressure on input costs, the company says.
Total income for the quarter under review was up 22.89 per cent to Rs 17.67 billion from Rs 14.4 billion a year ago.
"The Indian automotive sector is experiencing robust performance and we are buoyant about the continued growth prospects. We are carefully watching global and domestic macroeconomic factors to aggressively pursue opportunities at home and abroad. We continue to invest in the brand, technology and manufacturing capacities in tandem with our long-term growth objectives," Amara Raja Batteries vice chairman and managing director Jayadev Galla said.
The board of directors also declared an interim dividend of Rs 2 per share of face value of Re 1 each for the year 2018-19.