Amara Raja Batteries Ltd has recorded a 42 per cent rise in net profit and a 17 per cent growth in sales for the first quarter ended June 30, 2001.
The company has posted a net profit of Rs 3.21 crore (Rs 2.26 crore) on sales of Rs 23.3 crore (Rs 19.8 crore).
On an equity capital of Rs 11.38 crore, the company's earnings per share stands at Rs 11.29.
Due to the nature of tender-based orders from the telecom and Railways departments, Amara Raja's turnover normally picks up from the second quarter onwards.
The company had posted a net profit of Rs 20.5 crore on a turnover of 125.94 crore in last fiscal.
In the automotive battery division, the company added new original equipment manufacturer (OEM) accounts such as Ashok Leyland cargo and Mahindra & Mahindra (Bolero) to the existing list of OEM customers -- Ford, General Motors and Mercedes Benz.
The company has also entered into a contract with Mico to manufacture and supply the products under their brand name, Ramachandra N Galla, managing director of the company, said at the annual general meeting of the company held today in Tirupati.
During June, the company has launched Harvest and Highway branded batteries for the tractors and trucks market, respectively. "The initial response for these products is encouraging," Galla said.
With competition in the traditional industrial battery segments intensifying every year, the company has set its sight on the UPS (uninterrupted power supply) battery market, where its presence is limited so far. The company is in the process of designing a new battery for the segment and it will be launched by the end of the current financial year."
"Like Amaron in the automotive battery segment, we are bench marking the new UPS battery with all the best products in the world," Galla said.
