Amara Raja gets a boost from India's EV revolution as firm's Q2 results beat Street expectations

Amara Raja Batteries Ltd, NSE: AMARRAJABAT, stocks locked in the upper circuit of 10 per cent in early trade on Friday, November 4, on the back of better-than-expected numbers in the July-September quarter of the current fiscal. The stock quoted Rs 573.10, up by 10 per cent at around 9:35 am. The upper circuit was revised 15 minutes later by the exchange. The counter had closed at Rs 519.75 in the previous session.

Earlier on Thursday, the battery manufacturer had announced that it reported a 39.42 per cent rise in consolidated profit after tax to Rs 201.22 crore in the second quarter that ended September 30, driven by higher sales. It had posted a consolidated profit after tax of Rs 144.32 crore in the same period last fiscal, Amara Raja Batteries said in a regulatory filing.

Amara Raja Batteries is one of the largest manufacturers of batteries in the country for both industrial and automotive segments.

The company had announced on Thursday a 39.42 per cent rise in consolidated profit after tax to Rs 201.22 crore in the second quarter ended September 30, driven by higher sales. It had posted a consolidated profit after tax of Rs 144.32 crore in the same period last fiscal, Amara Raja Batteries said in a regulatory filing.

Reacting to the strong Q2 results of Amar Raja Batteries, Zee Business Managing Editor Anil Singhvi had earlier said that the company is doing well despite all the apprehensions.

The consolidated revenue from operations stood at Rs 2,700.47 crore against Rs 2,264.15 crore in the year-ago period.
Its total expenses were higher at Rs 2,449.11 crore compared to Rs 2,097.17 crore a year ago, the filing said.

"The company has posted a strong performance in the second quarter on all fronts. There are concerns that electric vehicle markets are taking shape and what will happen to old battery stocks. But see the performance. See the number of vehicles being sold that use this company's battery," he added.

Amara Raja Batteries Dividend Announced

The Board of Directors at its meeting held on Thursday also approved an interim dividend of Rs 2.90 per equity share of the face value of Re 1 each.

The share of the company on a year-to-date basis has given a negative return of over 10.22 per cent. In the last one year, the scrip has given a negative return of 18.51 per cent.

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The 52-week high and low of the scrip are Rs 714 and Rs 438.05. The share of the company hit an all-time high of Rs 1,025 on January 15, 2021 and an all-time low of Rs 348.55 on March 24, 2020.