Amara Raja Batteries' first quarter net profit is seen rising 15.2 percent year-on-year to Rs 122 crore, according to average of estimates of analysts polled by CNBC-TV18.
Revenue growth rate may be lower compared to FY15 (22.5 percent). Analysts expect revenue to increase 15 percent to Rs 1,186 crore against Rs 1,029 crore during the same period.
However, demand continued to be strong in auto and telecom battery segment, they said.
As a result, operating profit is expected to grow 19.3 percent year-on-year to Rs 209.5 crore in June quarter against 27 percent in FY15. Margin may expand 64 basis points to 17.7 percent during the quarter.
Analysts said the company has gained market share from Exide in the recent past. They see good traction in exports after export revenue doubled in FY15.
Key positive for Amara Raja in last few quarters has been its stronger sales and margin growth compared to its peer Exide Industries. In FY15, Amara Raja’s EBITDA margin expanded by 50 basis points to 17.2 percent while Exide’s EBITDA margin declined 50 basis points to 13.3 percent.
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