 "Amara Raja Q3 net profit up 33% at Rs 136 cr")
Automobile battery maker Amara Raja Batteries Limited has reported a 33% jump in net profit at Rs 136.18 crore in the quarter ended December, 2015 on the back of higher sales volumes. The company's net profit in the corresponding quarter of the previous year stood at Rs 102.34 crore.
Total income from operations during the quarter under review grew by 15.62% at Rs 1,225.14 crore as compared with Rs 1,059.55 crore in the year ago period.
Despite a substantial increase in employee costs and other expenses the total expenses grew at 12.8% during the three month period helping in improvement of gross profit margins.
The company said the four wheeler batteries volumes grew phenomenally in the replacement battery segment in both its preferred brands Amaron and PowerZone.
"We are delighted to report yet again the highest revenue and profit for a quarter. Our timely decision to expand the four wheeler and two wheeler battery capacities have begun to pay off. We are steadily and aggressively increasing our market share in both B2B and B2C segments of automotive batteries business and expect to achieve greater market share soon..," Jayadev Galla, vice chairman and managing director of Amara Raja Batteries said.
Sale to OEM sector grew aided by growth in the OEM production of automobiles. The company's growth in the after market and OEM beyond the industry growth helped it in gaining market share in both four and two wheeler segments during the quarter, Amara Raja said.
The company's industrial battery business registered a double digit growth over the third quarter of the previous year while the demand from telecom sector was primarily driven by data growth and the drive for energy optimisation by tower companies. The demand for UPS batteries was moderate, according to the company.