Indian battery maker Amara Raja’s Q2 profit rises on steady automotive demand
Nov 4(Reuters) – Indian battery maker Amara Raja Energy & Mobility (AMAR.NS), reported a 6.3% rise in second-quarter profit on Monday, aided by continued demand from automotive manufacturers.
The company’s net profit rose to 2.41 billion rupees ($28.7 million) for the quarter ended Sept. 30, from 2.26 billion rupees a year earlier.
However, this is its slowest quarterly profit growth in a year as car manufactures moderated dispatches to dealers to help reduce high inventory during the quarter.
This also resulted in rival Exide Industries (EXID.NS), reporting a smaller-than-expected profit earlier in the day.
India’s total vehicle production increased 9% in the September quarter, but slowed down sequentially from 16.1% in the first quarter, according to Society of Indian Automobile Manufacturers (SIAM), an industry body.
Amara Raja, which derives almost three-fourths of its revenue from its automotive battery business, counts top automakers including Bajaj Auto (BAJA.NS), Hero MotoCorp (HROM.NS), and Maruti Suzuki (MRTI.NS), among its clients.
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Indian battery maker Amara Raja’s Q2 profit rises on steady automotive demand, source
