Amara Raja Batteries fell 3.61% to Rs 575.60 at 13:19 IST on BSE on profit booking after recent gains triggered by the company reporting decent Q1 earnings.
Meanwhile, the BSE Sensex was down 13.67 points, or 0.05%, to 26,300.62.
On BSE, so far 26,000 shares were traded in the counter, compared with an average volume of 35,556 shares in the past one quarter.
The stock hit a high of Rs 600 and a low of Rs 563.35 so far during the day. The stock hit a record high of Rs 616 on 19 August 2014. The stock hit a 52-week low of Rs 225 on 28 August 2013.
The stock had outperformed the market over the past one month till 20 August 2014, rising 24.08% compared with 2.62% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 52.80% as against Sensex's 7.95% rise.
The mid-cap industrial and automotive battery maker has equity capital of Rs 17.08 crore. Face value per share is Re 1.
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Shares of Amara Raja Batteries (Amara Raja) rose 19.89% in 10 trading sessions to Rs 597.15 on Wednesday, 20 August 2014, from Rs 498.10 on 5 August 2014, after the company during market hours on 6 August 2014, reported decent Q1 earnings. The stock had surged 3.71% to settle at Rs 516.60 on 6 August 2014.
Amara Raja's net profit rose 8.16% to Rs 106 crore on 15.55% growth in net sales excluding other operating income to Rs 1025 crore in Q1 June 2014 over Q1 June 2013.
Amara Raja said that the Automotive battery business continued to maintain the growth momentum in four wheeler batteries backed by improved aftermarket sales arising out of strong preference for our brands Amaron and PowerZone. The significant volume growth in two wheeler batteries (Amaron ProbikeRider) has added to the performance of the business unit. During the quarter, the company has commenced supplies of two wheeler batteries to Honda Motors India, for their plant in Karnataka. The trading in tubular batteries and home UPS under private label program has sustained the momentum during the quarter, despite unfavourable demand conditions, Amara Raja said. The capacity expansion undertaken by the company is in advanced stages of completion which would enable the company, to meet future demand and enhance the market share, Amara Raja said in a statement.
The Industrial Battery business registered double digit volume and revenue growth aided by newly added capacities both in LVRLA and MVRLA product ranges, optimal product mix and strong demand for company's products, Amara Raja said. The demand from telecom sector continues to be robust and is primarily for replacement, it added. The demand for UPS batteries too is showing signs of improvement, Amara Raja said in a statement.
The continuing strong performance of industrial battery business is because of its "preferred supplier status" with all major customers, backed by timely supplies, efficient after sales service, customer relationship management and consistent product performance, Amara Raja said. The company has progressively started providing total solutions to customers enabling it to forge strategic alliances and gain service revenue stream, Amara Raja said in a statement.
The investments in capacity expansions made during last year, will ably support the growth plans of the industrial battery business during the current year, Amara Raja said in a statement.
Amara Raja Batteries, a company with 26% equity each from Galla Family and Johnson Controls Inc, USA, is the technology leader and is one of the largest manufacturers of lead acid batteries for both industrial and automotive applications in the Indian storage battery industry. Amara Raja is a leading manufacturer of automotive batteries under the brands - Amaron and Powerzone.
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