Amara Raja Batteries reports 21% yoy increase in Q3FY22 revenue to Rs2,365.07 crore

14 Feb 2022 , 02:50 PM

Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major, reported profit before tax of Rs197.05 crore for Q3FY22 as compared to Rs259.90 crore during Q3FY21. The Revenue for Q3FY22 stood at Rs2,365.07 crore as compared to Rs1,960.12 crore during Q3FY21, a rise of 21% yoy. The Earnings per Share (EPS) for Q3FY22 was at Rs8.47.

Revenue growth in the current quarter is aided by the increase in Aftermarket volumes across all product segments. The slowdown in the OEM production has resulted in lower volumes in both 2W and 4W batteries. Supply chain constraints are impacting the export volumes.

Industrial Volumes are stable across all segments and exports registered impressive growth. Demand signals from Telecom and UPS are robust. Easing of the Covid restrictions should provide further opportunities to improve our capacity utilization, company said in a filing.

Margins are under pressure due to higher input costs. While some of these costs are recovered through price changes, focus is to improve internal process efficiencies thereby improving the operating margins.

At around 2.52 pm, Amara Raja Batteries Ltd was trading at Rs583.05 per piece down by Rs24.8 or 4.08% from its previous closing of Rs607.85 per piece on the BSE.

Jayadev Galla, Chairman & Managing Director of the Company, said “In line with our Energy and Mobility Strategy, we have initiated steps on value maximization of the lead acid business, pursuing opportunities in expanding our manufacturing foot print, and also making vital investments in technology partnerships, in the New Energy space”