Amara Raja Batteries Ltd has posted a net profit of Rs 97.8 crore for the first quarter ended June 30, 2013, up 29 per cent over Rs 76.1 crore it logged for the corresponding quarter last year.
Net sales (excluding other income) was up at Rs 886.8 crore (Rs 687.8 crore). Jaydev Galla, VC and Managing Director, said: “Both the automotive and industrial battery business need supply support to continue the growth momentum and gain market share. Our focus is on early completion of capacity expansions. This will help realise medium and long term objectives.”
The company’s automotive business maintained momentum in four-wheelers, backed by improved aftermarket sales arising out of strong performance for its Amaron and PowerZone brands. Significant volume growth in two-wheeler batteries has added to the performance of business unit. During the quarter, the company commenced supplies of two-wheeler batteries to Honda Motors India.
The trading in tubular batteries and home UPS under private label programme has sustained the business during the quarter in spite of unfavourable demand. The company is looking at enhancing the capacity in both the product lines. The industrial battery division registered double-digit growth aided by product mix and demand from telecom and other segments. While the UPS original equipment market has moderated due to economic conditions, replacement demand continues to be strong. Amara Raja had to contend with capacity constraints in this segment.
The company said Ravi Bhamidipati had tendered his resignation as director and Executive Director with effect from August 31.