Consolidated profit before tax (PBT) surged 19.93% to Rs 260.40 crore in Q3 December 2020 as against Rs 217.11 crore in Q3 December 2019. Total tax expenses for the quarter soared 25.98% to Rs 66.71 crore as against Rs 52.95 crore paid in Q3 December 2019. The Q3 result was declared today, 13 February 2021.
The board approved the payment of an interim dividend of Rs 5 per equity share (representing 500%) on face value of Re 1 each for the FY 2020-21. In the automotive segment, revenue growth is aided by consistent growth in OEM and aftermarket segments and also the export segment registered robust growth. The telecom and commercial UPS market segments have also recorded a strong growth in the third quarter. Manufacturing capacities are fully ramped up to the optimum utilisation across all segments.
During the quarter, Amara Raja Batteries (ARBL) has inaugurated the “Advanced Lithium Technology Research Hub” with pilot plant facility for cell development. ARBL has developed a wide range of battery packs for e-Mobility and Energy storage applications and has secured approvals from various OE's and fleet operators for commercial supplies. To further support the sustainability initiatives, ARBL is setting up a 50 megawatt (MW) solar power plant in Chittoor District of Andhra Pradesh at a total outlay of Rs 220 crore. This will further reduce the cost of power and simultaneously bring down the carbon footprint of the company.
As part of the overall lead procurement strategy, ARBL will set up a greenfield lead recycling unit with a capacity of one lakh tons which will help the company comply with recycling standards whilst adopting advance technology in the most environmentally friendly manner. The total capital outlay for this project is expected to be Rs 280 crore to be spent over the next 18 months.
Commenting on the Q3 result, Jayadev Galla, the vice chairman & managing director (MD) of Amara Raja Batteries, said that: "The Indian economy has started showing sharper signs of recovery, with reduction in COVID-19 prevalence and ongoing vaccination drive boosting industry confidence. The rebounding of the economy, with recent lessons, is improving the prospects of various market segments, especially those in which were are operating. The Indian Government has recently announced many initiatives and PLI schemes which will accelerate the growth of E-mobility and renewable energy markets. We are assessing the investment opportunities in advanced and futuristic energy storage technologies to address these emerging market segments."
S. Vijayanand, the chief executive officer (CEO) of Amara Raja Batteries, has said that: "We are going forward with strategic investments focused on improving operational efficiencies, cost optimisation and technology upgradation. The planned investments in Solar and lead recycling plants will further strengthen our resolve towards a cleaner environment through a sustainable circular economy and also aid reducing costs and provide long term support to our key raw material procurement."
Shares of Amara Raja Batteries (ARBL) rose 0.71% to close at Rs 990.05 on BSE. ARBL is a manufacturer of leadacid batteries for both industrial and automotive applications.