Amara Raja Batteries rallies on strong Q2 earnings

The board has approved the capital expansion plan of Rs 100 crore for setting up of a plant for manufacture of two wheeler batteries.

Amara Raja Batteries has rallied 9% to Rs 244 after reporting 35% year-on-year (yoy) growth in net profit at Rs 70 crore for the second quarter ended September 2012 on back of higher sales. Net sales grew 28% at Rs 719 crore on y-o-y basis.

Meanwhile, the board of directors of the company has approved the capital expansion plan of Rs 100 crore for setting up of a plant for manufacture of two wheeler batteries.

The stock opened at Rs 230 and hit a high of Rs 245 on the BSE. As many as a combined 0.86 million shares have already changed hands on the counter in opening deals against an average 1.59 million shares that were traded daily in past two weeks.