November 3, 2022
Amara Raja Batteries reports 19% increase in revenues over previous year in Q2 of FY23, announces Li-Ion battery manufacturing subsidiary. Tirupati, Nov 3, 2022
Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT), today, reported profit before tax of ₹ 276.52 Crores for Q2 of FY 23 which is a growth of 56% over Q1.
The company has announced an interim dividend of ₹ 2.90 per equity share of face value of ₹ 1 each. The Earnings per Share (EPS) for Q2 of FY 23 was at ₹ 11.84.
Standalone financial performance highlights:
|Quarter Ended (Rs. in crores)
|Sept 30, 2022
|Sept 30, 2021
|Net Revenue from operations
|Profit Before Tax
The company witnessed robust demand in the automotive sector from the aftermarket as well as OEM segments. Exports showed very healthy growth in Middle East and South East Asian markets. Industrial battery volumes continued their upswing, especially in the telecom segment driven by 5G rollout preparations in India. Harshavardhana Gourineni, Executive Director – Automotive & Industrial Business said “We have rebounded from the cost pressures of the previous quarters and have grown the business across verticals. We are optimistic that the economic drivers will remain stable in the near future.”
Advanced Energy Storage Technologies Subsidiary
As part of the Energy & Mobility strategy announced by the company last year, Amara Raja has been at the forefront of establishing the domestic manufacturing eco-system for advanced energy storage technologies, including Li ion cells and packs for E-mobility and stationery energy storage applications.
To further strengthen its efforts in this space the company has today at its board meeting announced the incorporation of a wholly-owned subsidiary that will set up a multi-gigawatt hour lithium-ion cell manufacturing facility. Vikramadithya Gourineni, Executive Director, New Energy Business says “This move allows us to expand Lithium business in a dedicated manner while setting the ground for larger investments and technical collaborations. We are in the process of finalizing the location for this investment and should be able to confirm soon.”
Speaking on this development, Jayadev Galla, Chairman & Managing Director of the Company, said “Amara Raja has been setting the standards in battery technology for over 3 decades and we are confident that Li-Ion will be no different. We have articulated a clear roadmap for building technology capabilities, investments in R&D and for establishing giga capacities. The subsidiary will bring in the required focus and house the New Energy investments. We remain committed to growing both our Lead Acid and New Energy businesses.”
About Amara Raja Batteries Limited
Amara Raja Batteries Limited is an Energy and Mobility enterprise and one of the largest manufacturers of energy storage products for both industrial and automotive applications in the Indian battery industry. In India, Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, the UPS sector (OEM & Replacement), Indian Railways and to the Power, Oil & Gas, among other industry segments. Amara Raja’s industrial battery brands comprise PowerStack®, AmaronVolt® and Quanta®. The Company is a leading manufacturer of automotive batteries under the brands Amaron® and PowerzoneTM, which are distributed through a large Pan-India sales & service retail network. The Company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The Company’s Industrial and Automotive Batteries are exported to countries in the Indian Ocean Rim.
Some of the statements in this news release that are not historical facts are forward looking statements. These forward looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward looking statements. These risks include, but are not limited to, the level of the market demand for our products, the highly competitive market for the types of the products that we offer, market condition that would cause our customers to reduce their spending for our products, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and otherwise not specifically mentioned herein but those that are common to industry.