February 24, 2022: India’s Amara Raja Batteries reported a 21% rise in revenue for operations in the third quarter of fiscal year 2022, but saw profits dip amid higher input costs, according to figures posted on February 11.
The lead battery giant said revenue for the period ended December 31, 2021, was Rs2,365 crore (about $317 million) compared to Rs1,960 crore in the year-ago period.
Profit was Rs197.05 crore compared to Rs259.90 crore in the period ended December 31, 2020.
Amara Raja said the revenue rise had been boosted by aftermarket volumes across all products segments.
A slowdown in OEM production had resulted in lower volumes in batteries for the two and four-wheel vehicles market, while exports were hit by “supply chain constraints”.
‘Improve efficiencies’
However, the company said an easing of restrictions imposed during the pandemic should provide further opportunities to improve capacity utilization and demand signals from the UPS and telecoms markets were “robust”.
Chairman and managing director, Jayadev Galla, said margins were under pressure due to higher input costs. While some of these costs could be recovered through price changes, the focus now is to “improve internal process efficiencies”.
“In line with our energy and mobility strategy, we have initiated steps on value maximization of the lead acid business, pursuing opportunities in expanding our manufacturing footprint, and also making vital investments in technology partnerships in the new energy space,” Galla said.
Separately, on February 15, the Andhra Pradesh High Court issued a further interim suspension of orders seeking to close several production plants operated by Amara Raja.
The Andhra Pradesh Pollution Control Board had issued closure orders in 2021 for the company’s plants at Karakambadi, Tirupati and Nunegundlapalli, in the Chittoor district of Andhra Pradesh state, amid allegations involving environmental regulations.
A further hearing into the issue is scheduled for February 28.
Photo: Chairman and MD Jayadev Galla
