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Amara Raja net, turnover rise

Our Bureau

CHENNAI, May 22

AMARA Raja Batteries has reported a higher turnover and net profit for the year ended March 31, 2001, as compared to the previous year. Buoyed by the sales of Amaron range of automotive batteries (which the company launched a little before the beginning of last year), the turnover increased to Rs 125.94 crore from Rs 108.15 crore in the previous year.

However, because of brand building and promotional expenses, profit before tax was lower at Rs 23.51 crore (Rs 26.38 crore).

But due to a lower provision for taxation of Rs 2.98 crore (Rs 6.84 crore), the company was able to report a marginal increase in its net profit. Net profit for the year 2000-01 was Rs 20.53 crore as compared to Rs 19.53 crore for the previous year.

The board of Directors has recommended a dividend of 35 per cent (Rs 3.5 per share). The company paid 30 per cent for the previous year.

A company official told Business Line that the provision for taxation was lower because the one year old automotive batteries division made a loss, which was allowed to be offset against the overall tax liability.

Official sources said that the Amaron range of batteries had captured nearly 8 per cent of the 4-wheeler batteries. Turnover from this range amounted to around Rs 20 crore.

In the quarter ended March 31, 2001, the company's turnover was Rs 42.16 crore, as against Rs 36.85 crore in the corresponding quarter of last year. Net profit was Rs 6.33 crore (Rs 4.4 crore). Earnings per share for last year worked out to Rs 19.64 (Rs 19.02).

Amara Raja proposes to increase the geographical coverage of its marketing activity in the current year. This, the company believes, will enable a doubling of turnover from automotive batteries.

The company invested Rs 25 crore in creating new capacities for producing the automotive batteries. The new plant is near the existing factory, where the company has been producing valve regulated lead acid batteries for industrial applications.

Currently, some of the operations in producing automotive batteries are being done at the old plant, while the later stage operations happen at the new one.

With an investment of Rs 20 crore this year, the automotive batteries will be entirely produced at the new plant. The investment will also enable capacity expansion.