Amara Raja Batteries surged 3.49% to Rs 769.10 after consolidated net profit jumped 25.42% to Rs 164.16 crore in Q3 December 2019 from Rs 130.89 crore in Q3 December 2018.
Profit before tax (PBT) also rose 9.76% to Rs 217.11 crore in Q3 December 2019 as compared to Rs 197.80 crore reported in Q3 December 2018. Total tax expenses fell 20.86% to Rs 52.95 crore in Q3 December 2019 from Rs 66.91 crore in Q3 December 2018.
The company's net revenue from operations in the December quarter stood at Rs 1747.81 crore, up 3.14% from Rs 1694.66 crore in the same period last year. The result was announced after market hours on Saturday, 1 February 2020.
The company said that OE (original equipment) and telecom sectors continue to experience demand slow down. However, the replacement demand for Amaron, Power Zone And Quanta batteries across market segments helped the company achieve healthy volume growth. Exports to countries in the Indian Ocean Rim geography continue to gain traction.
Commenting on the Q3 performance, S. Vijayanand, CEO, Amara Raja Batteries commented, "Our focus on operational excellence and cost efficiency is helping us stay competitive under difficult economic conditions. The planned investments in capacity enhancement and technology upgradation are progressing as per schedule."
Jayadev Galla, vice chairman & managing director, Amara Raja Batteries said, "The automotive sector is facing challenges of demand uncertainty due to social, regulatory and technological changes. The coming months will provide clarity on the medium and long term growth trajectory of this sector. We are closely tracking the emerging opportunities and will continue to leverage our strengths to tap into these opportunities at the right time."
Amara Raja Batteries is a manufacturer of leadacid batteries for both industrial and automotive applications.
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