The automotive battery business has boosted the financial performance of Amara Raja Batteries Ltd. The company recorded a net profit of 58.3 crore for the fourth quarter ended March 31, 2012, against the Rs 41.1 crore it logged for the corresponding quarter last year.
The gross sales for the quarter was up at Rs 739.6 crore as against Rs 550.9 crore for the year ago quarter.
For the financial year ended March 31, 2012, the company closed with a net profit of Rs 215.1 crore on gross sales of Rs 2,605.8 crore, as against a net profit of Rs 148.1 crore and gross sales of Rs 1,944.3 crore.
The automotive business registered a growth of 39 per cent in sales, enabled by volume growth in two- and four-wheeler batteries.
‘Highest ever sales'
Mr Jayadev Galla, Managing Director, said the performance reflects highest ever sales and profitability numbers despite uncertainty in the telecom sector and slowdown in automobile industry.
“The continuing Eurozone crisis, volatile rupee and high inflation are causes for concern as we step into new financial year. The softening of lead prices and our capability to perform with differentiated strategy will help us sustain this growth momentum,” he said.
Mr K. Suresh, Chief Financial Officer, said the company enjoys debt free status and free cash flow of over Rs 200 crore. Profits would have been higher but for provisions towards doubtful debts and warranty claims in the future.
Stock split
The company Board recommended a share split from Rs 2 to Rs 1 a share. It recommended a dividend of Rs 3.78 per share. Amara Raja shares closed the day up 3.75 per cent at Rs 308.40.