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Amara Raja Batteries Limited reports a record quarterly results

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Hyderabad/Tirupati, October 27, 2020: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT) today reported a revenue of Rs 1935.82 crore in Q2 FY21 (Rs 1695.31 crores) and profit Before tax (PBT) of Rs.270.96 crores (Rs. 231.83 crores). The Earnings Per Share (EPS) for Q2 FY 21 was at Rs. 11.79.

Amara Raja Batteries reported record quarterly results during the July-September quarter even as the economy picked up momentum enabled by the progressively relaxed unlock norms announced by government. The company’s performance during the quarter was driven by the demand rebound across all key sectors of the business. The robust operational guidelines to deal with pandemic risk have helped ramp up in manufacturing capacity utilization and distribution operations.

In the automotive segment, both the OEM and aftermarket demand saw a sharp raise. Vehicle production saw a month-on-month rebound to refill the dealer inventories and gear up for the demand during upcoming festive season. Personal mobility preferences also saw increased purchase of 2W and entry level passenger vehicles. The aftermarket saw strong pent up demand sustaining post initial lock down periods and with easing of logistics, channel sales and distribution activities were streamlined to meet the demand.

Industrial Business continued to see sustained demand from Telecom and commercial UPS market segments on the back of enhanced priorities for keeping the data network uptimes near to 100%. Exports of automotive batteries and industrial batteries also saw an upsurge as markets across the geographies opened up.

Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “The resurfacing of demand from all the key segments of our business helped us perform strongly during the quarter. The revamped planning systems and digital enablement of business processes across various functions are helping the organisation to stay agile and respond to the fast changing business environment. While the economic activity has picked up in the country, the uncertainty of COVID impact continues to keep us on the watch. We are tracking the overall economic trends carefully both in domestic context as well as global context and are geared up to deal with both the opportunities and challenges in equal measure.”

Commenting on the Q2 performance, S. Vijayanand, CEO, Amara Raja Batteries Limited said, “We have been operating all our manufacturing facilities near 100% capacity utilisation to keep pace with the demand ramp up. There have been some delays in the capacity expansion programs in the last couple of quarters due to COVID restrictions and we are working in a focused manner to complete these projects which should help us to debottleneck supply constraints in the coming months. It is very heartening to see all the employees and business partners raise to the occasion to put in their best effort to meet the challenges posed by the pandemic.”

Updated on October 27, 2020