Amara Raja Batteries Ltd. (ARBL) has registered the highest-ever half-yearly revenue of Rs. 1,692 crores for the period ended 
September 30, 2013, as well as record profit before tax of Rs. 274 crores and profit after tax of Rs. 192 crores. The company reported net sales, excluding other income, of Rs. 804.72 crores in the second quarter ended September 30, 2013, against Rs. 716.15 crores in the corresponding quarter last year, representing a 12.37 per cent growth. Profit before tax for the quarter at Rs. 133.90 crores (Rs. 101.77 crores), representing a growth of 31.57 per cent.
The automotive battery business reported double-digit growth in revenue, aided by strong volume expansion both in four-wheeler and two-wheeler batteries in the replacement market, while the OEM demand continued to be sluggish. The trading volume in home UPS business suffered due to unfavorable season. However, supplies of two-wheeler batteries to Honda Motors picked up well.
The company’s effort to enhance the capacities of two-wheeler battery at the existing plant has witnessed some delay and is likely to go on stream by the end of January next. The enhanced capacities will help the company commence business with other major two-wheeler OEMs and grow the aftermarket business in a big way. The greenfield project for enhancement of four-wheeler capacity is progressing as per schedule and is likely to commence production by the second quarter of the next financial year.
Commenting on the Q2 performance, Mr. Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries, said: “I am happy to note that our sustained good performance continues to be in line with our annual plan and expectations, despite the slowing economy, volatile rupee and sluggish demand in the automotive and UPS OEM sectors. The ongoing agitation for a united State of Andhra Pradesh in the Chittoor district has, so far, not had any major impact on the operations of the company, largely supported by the credibility enjoyed by the organization”.