Amara Raja Batteries surged 4.79% to Rs 644 after consolidated net profit rose 15.3% to Rs 137.30 crore on 0.9% rise in net sales to Rs 1581.39 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax stood at Rs 178.93 crore in Q4 March 2020, rising 0.5% from Rs 177.99 crore in the same period last year. Total tax expenses declined 17.4% to Rs 48.63 crore in Q4 March 2020 from Rs 58.91 crore in Q4 March 2019. The result was announced on Saturday, 30 May 2020.Commenting on the Q4 performance, S. Vijayanand, CEO, Amara Raja Batteries said, "Amara Raja Batteries continued focus on innovation and strong customer portfolio, positioned us well for 2020 and beyond. All essential product and service delivery to key customer segments were carried out uninterrupted during the lock down phase. The company's strong cash flows and healthy liquidity position is of great support to navigate the current crisis. The company returned to partial operations during the month of May and continue to ramp up production, sales and service activities in the recent weeks."
Amara Raja said that Automotive Business Division substantially overcame the demand slowdown in Auto OE segment aided by significant traction in volume growth under challenging market conditions. In spite of market disruptions towards the year end due to the COVID19 induced lockdown restrictions, both the automotive brands, AMARON and POWERZONE, continued strong growth momentum across vehicle segments. However, growth in home UPS segment has been moderate as the seasonal demand for inverter batteries was severely impacted by the lockdown restrictions in March.
The stock extended its winning run to fifth consecutive trading session. The stock has gained 8.7% in five trading days from its previous closing low of Rs 592.40 posted on 22 May 2020.
Amara Raja Batteries makes batteries for both industrial and automotive applications.
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