Shares of Amara Raja Batteries pared all losses to trade over 4 percent lower to Rs 1,192 apiece on May 29, a day after the company declared its fourth quarter results.
During the quarter, Amara Raja reported 61.4 percent year-on-year (YoY) jump in net profit at Rs 230 crore, while its revenue from operations climbed 19.5 percent to Rs 2,908 crore as against Rs 2,433.2 crore in the year-ago period.
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Its EBITDA (earnings before interest, tax, depreciation and amortization) increased by 16.2 per cent to Rs 410.4 crore in the fourth quarter of FY24, up from Rs 353.2 crore in the fourth quarter of FY23. Margins, on the other hand, witnessed a slight blip, contracting to 14.1 percent from 14.5 percent reported during the quarter.
The demand for batteries in the automobile industry surged during the quarter, driven by more than 21 percent year-on-year increase in vehicle production, Society of Indian Automobile Manufacturers (SIAM) data showed.
Amara Raja's clientele includes leading automakers like Maruti Suzuki, Tata Motors, and Hero MotoCorp. Harshavardhana Gourineni, Executive Director of Automotive & Industrial Batteries, noted that the company experienced robust and sustained growth in both the industrial and automotive sectors, leading to a 10 percent increase in overall revenue.
At about 1:40 pm, shares of the company were trading at Rs 1,210 apiece, down 3 percent from the last close. Amara Raja shares have rallied a massive 50 percent in the last three months.
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