Indian battery maker Amara Raja's Q4 profit climbs on strong demand

Exide Industries

28/05/2024 14:34

BENGALURU, May 28 (Reuters) - Indian battery maker Amara
Raja Energy & Mobility  AMAR.NS  posted a rise in quarterly
profit on Tuesday, helped by strong demand for its batteries
from the automobile companies.
    The company's standalone net profit rose nearly 62% to 2.28
billion rupees ($27.4 million) in the three months to March 31,
still shy of analysts' average estimate of 2.33 billion rupees,
according to LSEG data.
        The automobile industry's requirement for batteries rose
in the quarter as vehicle production increased more than 21%
year-on-year, according to data from industry body Society of
Indian Automobile Manufacturers (SIAM).
    Amara Raja has top automakers, including Maruti Suzuki
 MRTI.NS , Tata Motors  TAMO.NS , and Hero MotoCorp  HROM.NS ,
as its clients.
    Revenue grew nearly 15% to 27.97 billion rupees, boosted by
a 19% rise in the company's lead-acid batteries and allied
products segment, which accounts for nearly all its revenue.
    The segment also includes its industrial business, which
benefitted from the expansion of India's 5G network, as Amara
Raja also supplies batteries to telecom equipment manufacturers.
    The company's expenses rose nearly 14%, led by increased
inventory purchases. Raw material costs, including lead, a key
input for battery makers, rose 2%.
    Rival battery maker Exide Industries beat its fourth-quarter
profit estimates last month.

($1 = 83.1768 Indian rupees)

 (Reporting by Varun Hebbalalu in Bengaluru; Editing by Ravi
Prakash Kumar)
 ((varunvyas.hebbalalu@thomsonreuters.com;))