Amara Raja Batteries Ltd has posted a net profit of ₹106 crore for the first quarter ended June 30, 2014 as against a net profit of ₹98 crore for the corresponding quarter last year.
The Hyderabad-based batteries major has registered sales income of ₹1,025 crore for the first quarter, thereby crossing the magical number of ₹1,000 crore for the first time in a quarter, as against ₹887 crore for the same period last year.
The company stated that the automotive business continued to maintain the momentum in four-wheeler batteries backed by improved after market sales through Amaron and PowerZone brands. The volume growth in two wheeler batteries has added to the performance of the business unit. It has begun supplies to Honda Motors.
Jaydev Galla, Vice-Chairman and Managing Director of Amara Raja, said, “The greenfield expansion of automotive battery facility would accelerate the growth momentum and enhance market share.”
The company’s automotive battery plant at Chittor is expected to start production by December 2014.
Last year’s investment in capacity expansion is expected to support the growth of the industrial battery business.
The industry batteries business registered double digit volume and revenue growth aided by newly added capacity.
The demand from the telecom sector continues to be robust and is primarily for replacement.
Further, the demand for UPS segment is showing signs of improvement, the company said.
SV Raghavendra, Chief Financial Officer, said the company continues to have sequential growth and the financial position of the company is healthy.
On Wednesday, the company shares closed at ₹505.95, up 1.6 per cent at BSE.