Amara Raja Batteries up nearly 10% on strong Q2 results

NEW DELHI: Amara Raja Batteries Ltd surged nearly 10 per cent in opening trade on Tuesday after the company reported strong quarterly results for the 2QFY13, driven by a strong growth in the automotive replacement segment.

At 09:45 am, Amara Raja Batteries was trading 9.5 per cent higher at Rs 244.85. It has hit a low of Rs 230 and a high of Rs 246.30 in trade today.

The top-line posted an impressive growth of 27.9 per cent YoY (3.6% QoQ) led by strong volume growth in the automotive (replacement) battery segments. Further, sustained momentum in the tubular and home UPS segment also aided the top-line growth.

On the operating front, the margins witnessed a 73 bps YoY expansion to 16.4 per cent primarily led by a 121 bps YoY decline in raw-material expenses as a percentage of sales mainly due to a fall in lead prices, Angel Broking said in a report.

“Led by a strong operating performance and significant increase in other income, the adjusted net profit registered a 53.2 per cent YoY (4.4 per cent QoQ) growth to Rs 79 crore,” added the report.