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HomeNewsBusinessEarningsAmara Raja Batteries Q2 profit may fall 18% on weak operating income, higher lead prices

Amara Raja Batteries Q2 profit may fall 18% on weak operating income, higher lead prices

Operating profit margin may be weak due to inability of the company to increase prices in telecom segment & other segments.

November 08, 2017 / 17:35 IST
We are in the last phase of the September quarter earnings season, and the results announced by the BSE 500 companies so far have shown signs of a sharp recovery, as compared to the June quarter, when the economic activity in the country was compromised due to lockdown in various regions. From the BSE 500 list, 216 companies have announced their September quarter results so far. We excluded banking and financial companies.  Along with the index stocks we also analyse each sector quarterly earnings. (Data Source: ACE Equity)
     
     
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    Amara Raja Batteries is expected to report a 18 percent decline in profit for the quarter ended September 2017, dented by weak operational performance and higher lead prices.

    Profit is likely to be at Rs 111.86 crore for the quarter against Rs 136.3 crore in year-ago, according to average of estimates of analysts polled by CNBC-TV18.

    Revenue during the quarter is seen rising 13 percent year-on-year to Rs 1,524 crore YoY while operating profit may fall 10 percent to Rs 206.4 crore and margin may contract 360 basis points to 13.5 percent.

    Revenue growth may be led by automotive (OEM) and tubular battery segments.

    Operating profit margin may be weak due to inability of the company to increase prices in telecom segment & other segments.

    Due to consistent increase in lead prices, analysts expect a dip in operating profit margin YoY. Spot LME lead prices increased around 7.6 percent QoQ and 19 percent YoY in Q2.

    first published: Nov 8, 2017 05:35 pm

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