India’s leading battery manufacturer Amara Raja Batteries reported a robust Q4 (January-March) aided by strong volume growth from both, automotive and industrial sectors. The company’s profits before tax in Q4 zoomed by 44pc to Rs2.58bn ($35mn). In FY2021, Amara Raja’s profit before tax was at Rs8.73bn, up by 4pc from the previous fiscal driven by a strong recovery in the last two quarters, noted the company’s earnings release.
The company is hopeful of a strong recovery in India’s economic activity in the near term but also warns of short-term barriers posed by the second wave of COVID-19 pandemic in the country.
Demand from automotive and industrial sectors was better than expected in Q3 and Q4, which resulted in higher demand for batteries which led to optimum manufacturing capacity utilization. The second wave of infections caused some hindrances to production and created a challenging environment for the company.
The ongoing lockdown has created an uncertain environment and impacted battery sales, the company release stated. The company is focused on maintaining the supply chain despite restriction.