Backed by strong growth in the automotive batteries segment, Amara Raja Batteries Ltd has posted a profit of ₹136.18 crore for the third quarter ended December 31, 2015, against ₹102.34 crore for the corresponding quarter last year.

Net sales income of the batteries major has increased to ₹1,225 crore during the third quarter, up from ₹1071.15 crore for the corresponding quarter last year. Last fiscal, the company had closed with net sales of ₹4,210 crore and profit of ₹411 crore.

The automotive battery business continued its growth across all verticals. During the quarter, growth in aftermarket and OEM beyond the industry growth helped gain market share in both four and two-wheeler segments.

The industrial batteries registered double-digit growth over Q3 of the previous financial year.

Jayadev Galla, Vice-Chairman & Managing Director, said: “Our timely decision to expand the four and two wheeler battery capacities have begun to pay off. We are increasing our market share in both B2B and B2C segments of automotive batteries business and expect to achieve greater market share soon. Industrial batteries business is quite stable with robust margins.” S V Raghavendra, Chief Financial Officer, said: “Cost of major raw materials have sharply declined. Further efforts taken by the operations team have helped in lowering the conversion costs in various plants. However, the raw material price gains were partly offset by sharp depreciation of rupee against dollar.”

“The new greenfield tubular battery plant is expected to be commissioned before end of this financial year. Further expansion plans will be decided before end of this financial year. The company continues to be debt-free and has healthy liquidity position,” he said.

Related Topics
comment COMMENT NOW