Amara Raja Batteries rallied 6.44% to Rs 696.10 after consolidated net profit soared 81.8% to Rs 218.61 crore on 3.3% decline in net sales to Rs 1,695.31 crore in Q2 September 2019 over Q2 September 2018.
The result was announced on Saturday, 9 November 2019. Both automotive and industry battery businesses have recorded healthy volume growth during the quarter barring automotive OE segment. The demand for Amaron and Power Zone brands in registered significant uptick in replacement market in 4-wheeler as well as 2-wheeler segments.
Commenting on the Q2 performance, Jayadev Galla, the vice chairman & managing director of Amara Raja Batteries, has said that, "While we are encouraged by the continued growth of our brands in replacement markets in both domestic and international markets, we are cautiously evaluating the trends in OE segment and calibrating our investment plans appropriately. We believe that continued technology upgradation and widening product portfolio to meet emerging customer needs will help us navigate through the demand cycles and sustain our growth momentum."
S. Vijayanand, the CEO of Amara Raja Batteries, has stated that, "Continued engagement with our key customers is helping us align with their strategic plans and collaborate to implement product enhancements and cost optimizations. This helped us gain higher share of business with customers across Telecom, UPS and automotive OE segments. Investments into digital transformation projects and capacity additions are progressing as per plan. The quarter also helped us improve our cash nows due to lower inventory costs on account of softer commodity prices."
Amara Raja Batteries is a manufacturer of lead-acid storage batteries for industrial and automotive applications in India. The firm's products are supplied to various user segments, such as telecom, railways, power control, solar and uninterruptible power supply (UPS) under industrial battery business, and to automobile original equipment manufacturers (OEMs), replacement market and private label customers under automotive battery business.
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