Amara Raja Batteries jumped 10.82% to Rs 576.05 after the company reported 39% rise in consolidated net profit to Rs 201.22 crore in Q2 FY23 from Rs 144.32 crore in Q2 FY22.
Revenue from operations rose by 19% YoY to Rs 2,700.47 crore during the quarter.
Total expenses increased by 17% to Rs 2.449.11 crore in Q2 FY23 over Q2 FY22, due to higher cost of raw materials (up 17% YoY), higher other expenses (up 13% YoY), higher cost of stock-in-trade purchases (up 18% YoY) and higher employee expenses (up 15% YoY).
Profit before tax in Q2 FY23 stood at Rs 275.33 crore, up by 42% from Rs 193.42 crore in Q2 FY22.
The company has announced an interim dividend of Rs 2.90 per equity share of face value of Rs 1 each. The company witnessed robust demand in the automotive sector from the aftermarket as well as OEM segments. Exports showed very healthy growth in Middle East and South East Asian markets. Industrial battery volumes continued their upswing, especially in the telecom segment driven by 5G rollout preparations in India.
Harshavardhana Gourineni, executive director - Automotive & Industrial Business, said: We have rebounded from the cost pressures of the previous quarters and have grown the business across verticals. We are optimistic that the economic drivers will remain stable in the near future.
"As part of the Energy & Mobility strategy announced by the company last year, Amara Raja has been at the forefront of establishing the domestic manufacturing eco-system for advanced energy storage technologies, including li-ion cells and packs for E-mobility and stationery energy storage applications," the battery maker said.
To further strengthen its efforts in this space the company has announced the incorporation of a wholly owned subsidiary that will set up a multi-gigawatt hour lithium-ion cell manufacturing facility.
Vikramadithya Gourineni, executive director, New Energy Business, says: "This move allows us to expand Lithium business in a dedicated manner while setting the ground for larger investments and technical collaborations. We are in the process of finalizing the location for this investment and should be able to confirm soon."
Jayadev Galla, chairman & managing director of the company, said Amara Raja has been setting the standards in battery technology for over 3 decades and we are confident that Li-Ion will be no different. We have articulated a clear roadmap for building technology capabilities, investments in R&D and for establishing giga capacities. The subsidiary will bring in the required focus and house the New Energy investments. We remain committed to growing both our Lead Acid and New Energy businesses.
Amara Raja Batteries is an energy and mobility enterprise and one of the largest manufacturers of energy storage products for both industrial and automotive applications in the Indian battery industry. The company's industrial battery brands comprise PowerStack, AmaronVolt and Quanta. The company is a leading manufacturer of automotive batteries under the brands Amaron and PowerzoneTM, which are distributed through a large pan-India sale & service retail network.
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