You are here: Home » Markets » News
Business Standard

Amara Raja Batteries up 7%; reports highest-ever net profit in Q2

The company said both automotive and industry battery businesses have recorded healthy volume growth during the quarter barring automotive OE segment.

SI Reporter  |  Mumbai 

Amara Raja batteries, Exide

Shares of surged 7 per cent to Rs 699 on the BSE on Monday, after the company reported 370 bps improvement in EBITDA (earnings before interest, tax, depreciation and amortisation) margin at 17.2 per cent in the September 2019 quarter (Q2FY20) on account of softer commodity prices. In comparison, the S&P BSE Sensex was down 0.16 per cent at 40,260 points at 09:39 am.

The company, a leading industrial and automotive battery major, reported its highest-ever net profit of Rs 219 crore, up 82 per cent on year-on-year (YoY) basis. Profit before tax (PBT) increased 25 per cent (YoY) at Rs 232 crore during the quarter. Operational revenue, however, declined 3 per cent to Rs 1,695 crore on YoY basis.

The both automotive and industry battery businesses have recorded healthy volume growth during the quarter barring automotive OE segment. The management said the demand for AMARON and POWER ZONE brands in registered significant uptick in replacement market in four-wheeler as well as two-wheeler segments. It also believes that continued technology upgradation and widening product portfolio to meet emerging customer needs will help the company navigate through the demand cycles and sustain growth momentum.

First Published: Mon, November 11 2019. 09:43 IST
RECOMMENDED FOR YOU