Amara Raja posts ₹193-cr net in third quarter

Our Bureau. Hyderabad | Updated on February 13, 2021

The festive season is also likely to augur well for the company

To set up 50 MW solar plant, pay ₹5 as interim dividend

Amara Raja Batteries Ltd (ARBL) has posted a profit of ₹193.1 crore for the third quarter ended December 31, 2020, against ₹164.41 crore in the corresponding quarter of last year.

Driven by the revival in demand across all key sectors of the business, the batteries major has reported a revenue of ₹1,960.12 crore in Q3 FY21 (₹1,747.81 crore) and profit before tax of ₹259.90 crore (₹ 217.36 crore).

The earnings per share (EPS) for Q3 FY 21 were ₹11.31

The Board of Directors also approved payment of an interim dividend of ₹5 per equity share (face value of Re 1) for the financial year 2020-21.

In the automotive segment, revenue growth is aided by consistent growth in OEM and aftermarket segments. The export segment too registered robust growth. The telecom and commercial UPS market segments have also recorded a strong growth in the third quarter. Manufacturing capacities are fully ramped up across all segments.

During the quarter, ARBL inaugurated the ‘Advanced Lithium Technology Research Hub’ with a pilot plant facility for cell development. Amara Raja has developed a wide range of battery packs for e-mobility and energy storage applications and has secured approvals from various OEMs and fleet operators for commercial supplies.

To further support the sustainability initiatives, ARBL is setting up a 50 MW solar power plant in Chittoor district of Andhra Pradesh at a total outlay of ₹220 crore. This will further reduce the cost of power and bring down the carbon footprint of the company.

As part of the overall lead procurement strategy, ARBL will set up a greenfield lead recycling unit with a capacity of 1 lakh tonnes. This will help the company comply with recycling standards whilst adopting advance technology in the most environment-friendly manner. The total capital outlay for this project is expected to be ₹ 280 crore, to be spent over the next 18 months.

‘Assessing investment opportunities’

Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited, said: “The Indian economy has started showing sharper signs of recovery, with reduction in Covid prevalence and ongoing vaccination drive boosting industry confidence. The rebounding of the economy, with recent lessons, is improving the prospects of various market segments, especially those in which were are operating. The government has recently announced many initiatives and PLI schemes which will accelerate the growth of E-mobility and renewable energy markets. We are assessing the investment opportunities in advanced and futuristic energy storage technologies to address these emerging market segments.”

S. Vijayanand, CEO, Amara Raja Batteries Limited said, “We are going forward with strategic investments focused on improving operational efficiencies, cost optimisation and technology upgradation. The planned investments in solar and lead recycling plants will further strengthen our resolve towards a cleaner environment through a sustainable circular economy and also aid reducing costs and provide long-term support to our key raw material procurement.”

Published on February 13, 2021

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