Shares of Amara Raja Batteries surged the most in a decade after the company's September quarter results.
Revenue growth for the quarter was nearly 20 percent from last year while the EBITDA margin expanded 140 basis points. The margin is back above the 13 percent mark for the first time in five quarters.
The company said it witnessed robust demand in the automotive sector from the aftermarket as well as OEM (original equipment manufacturer) segments. Exports showed very healthy growth in the Middle East and South East Asian markets. Moreover, industrial battery volumes continued their upswing, especially in the telecom segment driven by 5G rollout preparations in India, the company added.
The management says that business has rebounded from cost pressures of the June quarter and they are hopeful of economic indicators stabilising going forward.
Additionally, the board has also approved an interim dividend of Rs. 2.90 per share. The record date for the same has been set at November 16.
The company will also incorporate a wholly-owned subsidiary that will set up a multi-gigawatt-hour lithium-ion cell manufacturing facility.
At 10:23 am on Friday, shares of Amara Raja were trading at Rs 572.50, up 10.15 percent. Interestingly, the stock has fallen over 21 percent in the last year compared to a nearly 1 percent rise in the benchmark Nifty 50 index.
(Edited by : Rukmani Krishna)
First Published: Nov 4, 2022 10:24 AM IST
