Business Daily from THE HINDU group of publications
Wednesday, Jan 23, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Jan 23, 2008 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
|
Corporate Results
-
Automobile Components Web Extras - Forex Rupee appreciation helps Amara Raja treble Q3 net 
Our Bureau Chennai, Jan. 22 Amara Raja Batteries today reported a net profit of Rs 29.65 crore for the third quarter of the current year, which is more than three times its net profit for the same quarter last year — Rs 9.6 crore. Indeed, Amara Raja was one of the few companies whose share prices rose today — the company’s share, Rs 2 each, closed at Rs 221, up by Rs 35.10 or 18.83 per cent over the previous close. The company is a manufacturer of lead acid batteries for both automotive and non-automotive applications, and imports its main raw material, lead. The company has benefited from both the softening of lead prices as well as strengthening of the rupee. Turnover for the quarter was Rs 307.88 crore, up from Rs 146.25 crore in the corresponding quarter of last year. Half the sales come from automotive segment and the rest from industrial customers, mainly telecom. Speaking to Business Line about the results, Mr K. Suresh, the company’s Financial Controller, said that while the company passed on the benefits of softening lead prices to automotive OEMs, it was yet to do so for automotive replacement and industrial customers. “Lead prices have softened to around $2,600 currently from the October high of $4,000,” says a press release from the company, adding that “there is a need to keep a cautious watch on this front”. Meanwhile, Amara Raja Batteries had planned to complete the 2-wheeler battery project by October and introduce the products in the market by that month. However, because of delays in equipment supplies, the project has suffered a delay and it now looks like the product would be launched only in March. Asked about this, Mr Suresh said that Amara Raja had planned for a capacity of 1 million units of two wheeler batteries by October which would be raised to 3.9 million by September 2008. The company had expected a turnover of Rs 35 crore from sales of 2-wheeler batteries in the current year. While that would not happen, the company is confident of putting in place the facility for 3.9 million units by September.
Asked about the possibility of the company setting up a plant at Hardwar, Uttar Pradesh, where the company has purchased 20 acres of land, Mr Suresh said that a decision on whether or not to put up a manufacturing unit there would be taken at the start of next financial year. Amara Raja to foray into 2-wheeler batteries Amara Raja net doubles; 1:5 stock split proposed Amara Raja net rises 40% More Stories on : Automobile Components | Forex
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|