Battery Maker Amara Raja’s Q3 Net Profit Rises 52% YoY on Robust Demand
Automotive and Telecom segments drove demand
January 30, 2023
Amara Raja Batteries recorded a net profit of ₹2.21 billion (~$27.09 million) in the third quarter (Q3) of the financial year (FY) 2022-23, a 52% YoY increase from ₹1.45 billion (~$17.77 million) on the back of robust demand for batteries from the aftermarket and original equipment manufacturing segments.
For the October-December period, the company recorded an income of ₹26.64 billion (~$326.63 million), a 12% YoY increase from ₹23.84 billion (~$292.28 million).
On a QoQ basis, the net profit increased by 10% from ₹2.01 billion (~$24.63 million), while the income fell by 2% compared to ₹27.24 billion (~$333.84 million).
The company, which makes lead-acid and other storage batteries, said that the rise in revenue was mainly due to the robust demand for batteries in the automotive sector from the aftermarket and original equipment manufacturing segments. The company witnessed considerable volume growth for its lithium-ion battery packs and chargers for the mobility segment.
Industrial battery volumes also grew by the Telecom segment.
The company recorded an income of ₹80.26 billion (~$983.8 million) in the first nine months (9M) of FY 2023, a 22% YoY increase from ₹65.78 billion (~$806.3 million).
Amara Raja recorded a net profit of ₹5.55 billion (~$68.03 million) in 9M FY23, a 34% YoY increase from ₹4.14 billion (~$50.74 million).
Amara Raja Batteries had announced a plan to invest in European EV battery manufacturer InoBat Auto. The initial investment will give Amara Raja a key foothold in the thriving European EV ecosystem.
The battery maker signed an agreement with Gridtential Energy to collaborate on bipolar battery technology. Under the agreement, they plan to assemble and test reference batteries using Amara Raja’s active material and work on improving their life cycle, energy density, efficiency, charging rates, and manufacturability.
Amara Raja Group was one of 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.
The company had led Bengaluru-headquartered advanced battery and fuel cell technology company Log 9 Materials’ $8.5 million Series A+ funding round. Log9 had entered an equity partnership and collaboration with Amara Raja Batteries. Amara Raja was the anchor investor in the funding round, investing $5 million.