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Last Updated : Aug 07, 2020 06:47 PM IST | Source: PTI

Amara Raja Batteries Q1 net profit falls 56% to Rs 62.49 crore as COVID hits business

Consolidated revenue from operations during the quarter under review stood at Rs 1,151.22 crore as compared to Rs 1,814.95 crore in the year-ago period.

PTI
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Amara Raja Batteries Ltd on Friday reported a 56 per cent decline in consolidated profit after tax at Rs 62.49 crore in the first quarter ended June 30 impacted adversely by the coronavirus pandemic. The company had posted a consolidated profit after tax of Rs 140.73 crore in the same period last fiscal, Amara Raja Batteries Ltd said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 1,151.22 crore as compared to Rs 1,814.95 crore in the year-ago period.

The performance of the company during the quarter comes against the backdrop of severe disruptions in manufacturing, supply chain, and sales and distribution operations due to COVID-19 lockdown, Amara Raja Batteries said, adding despite challenges it has performed well to manage demand and supply, by implementing completely new standard operating procedures across operational branches and units.

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In the automotive segment, OEM (original equipment manufacturer) demand was subdued due to lockdown challenges across the country and vehicle production could recommence only in June with graded ramp up.

Demand for batteries in the after market recovered sharply and supplies were ramped up to cater to market requirements while implementing the new operational guidelines across the business operations, it added.

Industrial business witnessed sharp demand ramp up in the UPS and telecom sector, while exports faced major challenges in the quarter. Markets in many countries were either impacted by lockdowns or disruption in logistics, the company added.

Commenting on the results, Amara Raja Batteries Vice Chairman and Managing Director Jayadev Galla said: "This quarter's performance holds special place in our hearts and consciousness, not due to the numbers, but due to unflinching commitment and commendable spirit shown by employees, partners and all stakeholders towards the organisation."

Amara Raja Batteries CEO S Vijayanand said: "Even as the COVID-19 pandemic disrupted the business operations and normal life in the society, we focused on executing our strategic initiatives in product development, digital transformation and capacity expansion."

He further said: "We are continuing to strengthen our internal policies and looking at newer operating models to maximise the utilisation of resources while ensuring utmost caution in the new normal."
First Published on Aug 7, 2020 06:44 pm
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