Amara Raja’s Q2 FY24 Profit Up 12.5% YoY as Sales Volume Grows
The company's revenue stood at ₹29.59 billion (~$355.3 million)
Amara Raja Energy & Mobility recorded a profit of ₹2.26 billion (~$27.1 million) during the second quarter (Q2) of the financial year (FY) 2024, a year-over-year (YoY) increase of 12.5% from ₹2 billion (~$24.1 million).
During the quarter, the company posted revenue of ₹29.59 billion (~$355.3 million), a YoY increase of 9.6% from ₹27 billion (~$324.2 million).
Revenue growth was supported by increased volume in the automotive aftermarket, as well as in the telecom and UPS segments, with the new energy business also experiencing positive growth.
The company offers various products, such as energy storage solutions, lithium-ion cell manufacturing, EV chargers, lithium-ion battery pack assembly, automotive and industrial lubricants, and the exploration of new chemistries.
The revenues from the company’s lead-acid batteries alone amounted to ₹28.09 billion (~$337.3 million), a 6.4% YoY increase from ₹26.39 billion (~$316.9 million).
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹4.02 billion (~$48.2 million), a 12.2% YoY increase.
“In the New Energy segment, we have seen healthy growth from chargers and increasing interest in cells and battery packs. Our work on the Gigafactory and e+ Energy Labs, the advanced energy research and innovation center, is progressing smoothly, and we are keeping a close eye on the evolving market conditions in this space,” said Vikramadithya Gourineni, Executive Director of New Energy Business.
The demand for electrification in India is projected to reach 150 GWh by 2030, driven by increased adoption across various user segments, such as mobility, telecom, and data centers.
The surge presents a substantial market share opportunity, further incentivized by financial subsidies, including manufacturing incentives valued at over ₹500 billion (~$6 billion). Additionally, strong customer demand for electric vehicles (EVs) ensures market expansion in specific segments.
One of the company’s significant initiatives is the planned Giga Corridor in Telangana, coupled with the establishment of E+ve Energy Labs in Hyderabad, with land allocation spanning 262 acres. The project aims to achieve 16 GWh cell Capacity over the next decade, with Phase 1 commercialization anticipated by FY26.
For the first half (1H) of the year, Amara Raja recorded a profit of ₹4.18 billion (~$50.1 million), a YoY increase of 25.6% from ₹3.33 billion (~$39.9 million).
Revenue came in at ₹57.55 billion (~$691.1 million), an 8.2% YoY increase from ₹53.21 million (~$638,977).
EBITDA for the period stood at ₹7.54 billion (~$90.5 million), a YoY increase of 21.6%.
Recently, the battery maker has broken ground on Telangana’s first gigafactory for lithium cell and battery pack manufacturing in the Mahbubnagar district.
Mercom reported that Amara Raja, in collaboration with Tirupati Municipal Corporation, launched electric vehicle charging stations and battery swapping stations in Tirupati, Andhra Pradesh.
Amara Raja Group was among the winners in NTPC‘s auction for a balance of systems package for the 735 (3*245) MW Nokh solar project in Rajasthan. Amara Raja Group won the bid for the second block of 245 MW by quoting ₹17.14 million (~$228,656)/MW.