Amara Raja Batteries soars 11% after Q2 numbers


Published On: Friday, November 4, 2022 | By:

Amara Raja Batteries soars 11% after Q2 numbers

Shares of Amara Raja Batteries soared 11 percent to Rs 571.75 on the BSE in Friday’s intra-day trade on the back of heavy volumes after the company reported a strong September quarter (Q2FY23). The Andhra Pradesh-based company reported a 39.42 percent YoY jump in consolidated profit after tax at Rs 201.22 crore for the September quarter, thanks to higher sales. The company had reported a consolidated profit of Rs 144.32 crore in the year-ago quarter. 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 also declared an interim dividend of Rs 2.9 per share with a record date on November 16, 2022.

The company witnessed robust demand in the automotive sector from the aftermarket as well as OEM segments. Exports showed very healthy growth in the Middle East and South East Asian markets. 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.

The company also announced formation of wholly-owned subsidiary to undertake the business of manufacturing LiOn batteries. However, it is yet to announce meaningful capital commitment towards the same, which makes us maintain a neutral stance on the stock, the brokerage firm said


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