Amara Raja Batteries Ltd, a Hyderabad-based industrial and automotive battery manufacturer, reported a 16.7 per cent decline in its net profit for the first quarter ended June 30, 2008, to Rs 14.91 crore, as compared with Rs 17.9 crore in the corresponding quarter last year.
"The bottom line was impacted due to the foreign currency loan translation loss on account of rupee depreciation amounting to Rs 9.1 crore,” said Suresh K, financial controller, Amara Raja.
Net sales, however, grew 42.98 per cent to Rs 384 crore during the quarter, as against Rs 268.56 crore in the same period last year. “Growing demand in telecom and UPS segments continued to increase our industrial battery business. The growth in the automotive battery segment too contributed to the top line,” said Jayadev Galla, managing director of the company.
To further consolidate the company’s growing presence in the industrial battery markets, he said the company had decided to invest Rs 52 crore to enhance capacities. Amara Raja has announced a 35 per cent dividend and recommended bonus shares in the ratio of 1:2.
