Battery manufacturer Amara Raja’s profits fell in June quarter (Q1) by 56pc to Rs624.9mn ($8.34mn) from the previous fiscal. Profits fell due to the impact of pandemic and lull in auto demand.
Complete lockdown in April, followed by manufacturing disruptions in May and June led to a troublesome quarter end with supply chain, sales and distributions being affected due to COVID-19, said the company.
Demand from the auto sector and original equipment manufacturer (OEM) was low due to lockdown in the country. Auto production resumed in June with most manufacturers ramping-up. Demand from aftermarket recovered sharply and the company had to run a “JumpStart” campaign for vehicles that were parked for too long during the lockdown phase.
Industrial business picked up with a sharp demand recovery in UPS and telecom sector in Q1 (April-June). Amara Raja catered to business sectors’ demand and ramped up battery production as it fell under essential category to support communication networks and data centres across the nation.
The export market in Q1 faced challenges due to lockdown and logistical disruptions, according to Amara Raja.
The company’s net revenues from operations stood at Rs11.51bn in Q1 down 37pc from the year prior while net profit slipped 56pc to Rs624mn from the previous fiscal.