Amara Raja Batteries has posted a profit of ₹134.45 crore for the third quarter ended December 31, 2017, against a profit of ₹112.32 crore for the corresponding quarter last year.
The batteries major posted income of ₹1,570 crore for the December quarter against ₹1,513 crore for the same period in the previous fiscal.
For the nine months ended December 2017, the company recorded a profit of ₹361.52 crore and income of ₹4694.91 crore.
An interim dividend of ₹2 per equity share of face value of ₹1 each, approved by the board of directors during the meeting held on November 9, 2017, was paid during the quarter.
Auto sector growth
Jaydev Galla, Vice-Chairman and Managing Director, said: “Since current capacity utilisations are nearing peak in most product lines, investments in capacity expansion are helping us meet the growing demand. We continue to focus on building capabilities to address emerging and future opportunities in energy storage and EV space.”
The company said the robust growth numbers reported from the auto sector augurs well for the company. It strengthened its position both in the original equipment and replacement market segments.
However, the continued escalation of lead prices remains a cause for concern and was partially offset by pricing actions.
The automotive battery business clocked healthy volume growth and both Amaron and Power Zone brands continue to grow on the back of channel expansion initiatives.
Exports to South-East Asia and West Asia have also increased year-on-year. The industrial battery business recorded significant growth in the UPS segment and volumes in telecom segment have seen a jump over the previous quarter. However, demand in telecom continues to be subdued.
The company’s scrip closed at ₹844.95, up 6 per cent, on the BSE.