Companies

Amara Raja Batteries’ Q1 net profit, revenue down due to Covid-19

Our Bureau Hyderabad | Updated on August 08, 2020 Published on August 08, 2020

A file photo of one of Amara Raja Batteries' units

Amara Raja Batteries Limited, has recorded a steep drop in net profit and revenues during the Covid-19 hit pandemic quarter ended June 30, 2020.

The batteries major reported a revenue of ₹1,151.04 crore in Q1 FY21 as against ₹1,814.95 crore for the corresponding quarter previous year. The company’s profit after tax was down at ₹62.68 crore as against ₹140.91 crore. The Earnings Per Share (EPS) for Q1 FY 21 was at ₹3.67.

Covid-19 impact

The performance of the company during the quarter comes against the backdrop of severe disruptions in manufacturing, supply chain and sales and distribution operations due to Covid-19 lockdown.

Despite the challenges, Amara Raja Batteries has performed well to manage the demand and supply, by implementing completely new Standard Operating Procedures across operational branches and units.

In the automotive segment, OEM demand was subdued due to lockdown challenges across the country, and vehicle production could recommence only in June with graded ramp up. Demand for batteries in after market recovered sharply and supplies were ramped up to cater to market requirements, while implementing the new operational guidelines across the business operations.

Both Amaron and Powerzone channels reached out to consumers through its “JumpStart” campaign to keep batteries in a charged condition in vehicles parked for long periods during lock down phase.

Industrial business witnessed sharp demand in UPS and telecom sector. The company responded to the needs of these segments by ensuring uninterrupted supply of products and services under essential category to support the critical communication networks and data centers across the country.

The company’s exports faced major challenges in the quarter. Markets in many countries were either impacted by lockdowns or there were disruption in logistics.

Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited, said, “This quarter’s performance holds special place in our hearts and consciousness, not due to the numbers, but due to unflinching commitment and commendable spirit shown by employees, partners and all stakeholders towards the organisation. The leadership here has been duly sensitive towards the health and safety of all our people."

S. Vijayanand, CEO, Amara Raja Batteries Limited, said, “Even as the Covid-19 pandemic disrupted the business operations and normal life in the society, we focused on executing our strategic initiatives in product development, digital transformation and capacity expansion. We are continuing to strengthen our internal policies and are looking at newer operating models to maximize the utilisation of resources while ensuring utmost caution in the new normal.”

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Published on August 08, 2020
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