Amara Raja Batteries clocks record revenue growth in Q1 2016-17

Amara Raja Batteries, today reported a net profit of Rs 130 crore for the April-June quarter with a 6.8% growth over the previous year, owing to the strong momentum in the automotive battery business and double-digit growth in the industrial battery business during the quarter.

The company clocked its highest ever quarterly revenue with gross sales of Rs 1,469 crore, clocking a 16.5% growth over the quarter last year.

The maker of the Amaron and PowerZone brand of batteries registered double-digit volume growth in the automotive aftermarket segment.

During the quarter, OEM production in four-wheeler segment grew, thereby, aiding higher sales of batteries in the OEM sector, thus adding to the company’s market share. Export share also grew with the commencement of sale of tubular batteries during the quarter.

Despite a challenging market, the company’s industrial battery business registered double-digit volume growth over Q1 of previous financial year, it said. The growth in demand from telecom sector was moderate and is primarily driven by data growth and the drive for energy optimization by tower companies. The UPS batteries demand also registered a double-digit growth.

Commenting on the Q1 performance, Jayadev Galla, vice chairman & managing director, Amara Raja Batteries said, “During the quarter, there has been significant strengthening of all core facets of business which has enabled the organization to remain fit to face the challenges of growth effectively. The volume and revenue growth has been the highest ever. All plants are running efficiently and at decent capacity levels. Production capacities for industrial and automotive lines of business are adequately available and the company is poised for scaling new heights.”