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.

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