The Hindu Business Line : Amara Raja revenue up; forex hit clips profits

Hyderabad, July 31 Amara Raja Batteries announced that it has recorded gross sales of Rs 384.08 crore with profit of Rs 14.9 crore for the first quarter ended June 30, 2008 as against total sales of Rs 268.85 crore and profit of Rs 17.9 crore for corresponding quarter last year.

Last fiscal ended March 31, 2008, the company had revenues of Rs 1,349.98 crore with a profit of Rs 94.36 core.

The company had notional exchange loss of Rs 9.1 crore on foreign currency loans which impacted overall profitability. The Managing Director of Amara Raja, Mr Jayadev Galla, in a statement said, “Growing demand in telecom and UPS segments continues to increase the company’s industrial batteries business.

The growth in automotive battery segment has also contributed to the top line.”

Expansion

“Our plans to increase capacity and distribution network are going as per schedule and would continue to contribute to our topline growth,” he said.

The company is expanding its presence in industrial battery markets with an investment of Rs 52 crore.

2-wheeler batteries

The newly-launched two-wheeler batteries Amaron Pro Bike Rider has received good response, the company maintained.

The Financial Controller of the company, Mr K. Suresh, said “the bottomline was impacted due to foreign currency loan translation loss due to rupee depreciation.”

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