+
Amara Raja Energy & Mobility Achieves Rs.2.55 Billion Q3 Profit Surge
POWER & RENEWABLE ENERGY

Amara Raja Energy & Mobility Achieves Rs.2.55 Billion Q3 Profit Surge

Amara Raja Energy & Mobility has posted stellar financial results for the third quarter (Q3) of the financial year (FY) 2024, demonstrating a net profit of ?2.55 billion (~$30.7 million). This marks an impressive year-over-year (YoY) increase of 14.8%, with the surge attributed to heightened sales volumes of automotive batteries in both domestic and international markets.

Throughout the quarter, the company achieved a revenue of ?30.68 billion ($369.7 million), reflecting a substantial YoY increase of 15% from ?26.64 billion ($321 million). This surge in revenue was fueled by the escalating demand for lead-acid batteries, with notable quantities observed in both original equipment manufacturer (OEM) and aftermarket segments, showcasing significant growth compared to the preceding quarter.

Amara Raja attributes a pivotal role to the telecom sector in driving volumes for industrial batteries, contributing to robust expansion. Notably, within the New Energy business, the company initiated the provision of battery packs to meet the demands of the telecom sector.

The revenue from the company?s lead-acid batteries alone amounted to ?28.96 billion ($348.9 million), indicating a substantial 12.6% YoY increase from ?25.7 billion ($309.6 million).

Despite economic challenges, the company asserts that its performance in the quarter remained robust. The transition following the name change was executed smoothly, and the introduction of new products in the traditional battery business, coupled with expansion into new segments under the New Energy business, significantly contributed to Amara Raja?s success.

Harshavardhana Gourineni, Executive Director, Automotive & Industrial Batteries, expressed optimism, stating, ?Our continuous growth inspires us to expand our product range. Recently, we launched our automotive lubricant business, which has gained significant traction. Additionally, we have strengthened our international operations by entering the North American market and securing a substantial order book.?

For the first nine months (9M) of the year, Amara Raja recorded a profit of ?6.73 billion ($81.1 million), marking a notable 21.2% YoY increase from ?5.55 billion ($66.8 million). The revenue for the 9M period amounted to ?88.75 billion ($1.06 billion), reflecting a solid 10.5% YoY increase from ?80.26 million ($967 million).

During 9M FY24, the company received an ad-hoc insurance payment of ?1 billion ($12.05 million) for the fire at its manufacturing facility in Chittoor, Andhra Pradesh, early last year, and ?929.4 million ($11.1 million) from the processing and sale of scrap.

Amara Raja Energy & Mobility continues to demonstrate strong financial performance, recently breaking ground on Telangana?s first gigafactory for lithium cell and battery pack manufacturing in the Mahbubnagar district. The company's strategic moves and adaptability underscore its commitment to growth and innovation in the dynamic energy and mobility sector.

Amara Raja Energy & Mobility has posted stellar financial results for the third quarter (Q3) of the financial year (FY) 2024, demonstrating a net profit of ?2.55 billion (~$30.7 million). This marks an impressive year-over-year (YoY) increase of 14.8%, with the surge attributed to heightened sales volumes of automotive batteries in both domestic and international markets. Throughout the quarter, the company achieved a revenue of ?30.68 billion ($369.7 million), reflecting a substantial YoY increase of 15% from ?26.64 billion ($321 million). This surge in revenue was fueled by the escalating demand for lead-acid batteries, with notable quantities observed in both original equipment manufacturer (OEM) and aftermarket segments, showcasing significant growth compared to the preceding quarter. Amara Raja attributes a pivotal role to the telecom sector in driving volumes for industrial batteries, contributing to robust expansion. Notably, within the New Energy business, the company initiated the provision of battery packs to meet the demands of the telecom sector. The revenue from the company?s lead-acid batteries alone amounted to ?28.96 billion ($348.9 million), indicating a substantial 12.6% YoY increase from ?25.7 billion ($309.6 million). Despite economic challenges, the company asserts that its performance in the quarter remained robust. The transition following the name change was executed smoothly, and the introduction of new products in the traditional battery business, coupled with expansion into new segments under the New Energy business, significantly contributed to Amara Raja?s success. Harshavardhana Gourineni, Executive Director, Automotive & Industrial Batteries, expressed optimism, stating, ?Our continuous growth inspires us to expand our product range. Recently, we launched our automotive lubricant business, which has gained significant traction. Additionally, we have strengthened our international operations by entering the North American market and securing a substantial order book.? For the first nine months (9M) of the year, Amara Raja recorded a profit of ?6.73 billion ($81.1 million), marking a notable 21.2% YoY increase from ?5.55 billion ($66.8 million). The revenue for the 9M period amounted to ?88.75 billion ($1.06 billion), reflecting a solid 10.5% YoY increase from ?80.26 million ($967 million). During 9M FY24, the company received an ad-hoc insurance payment of ?1 billion ($12.05 million) for the fire at its manufacturing facility in Chittoor, Andhra Pradesh, early last year, and ?929.4 million ($11.1 million) from the processing and sale of scrap. Amara Raja Energy & Mobility continues to demonstrate strong financial performance, recently breaking ground on Telangana?s first gigafactory for lithium cell and battery pack manufacturing in the Mahbubnagar district. The company's strategic moves and adaptability underscore its commitment to growth and innovation in the dynamic energy and mobility sector.

Next Story
Infrastructure Urban

Budget Proposal Aims to Boost Investments

The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..

Next Story
Infrastructure Urban

Indian Financial System Resilient Amidst Challenges

The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..

Next Story
Infrastructure Energy

SC Allows State Tax on Mines, Minerals

Opposition leaders have welcomed the Supreme Court's recent decision permitting states to levy taxes on mines and mineral-bearing lands, as reported. The ruling is seen as a significant victory for state governments seeking greater control and revenue from natural resource extraction within their jurisdictions. The Supreme Court?s decision empowers states to impose taxes on mining operations and mineral-rich lands, which could enhance their revenue streams and enable better management of local resources. This move is particularly important for states with substantial mineral resources, as it a..

Talk to us?