Amara Raja Reports 12.5% YoY Profit Growth in Q2 FY24 Due to Higher Sales Volume
Amara Raja Energy & Mobility made a profit of ₹2.26 billion (~$27.1 million) in Q2 of FY 2024. This was 12.5% more than the ₹2 billion (~$24.1 million) they made in the same quarter last year. They also earned ₹29.59 billion (~$355.3 million) in Q2, which was 9.6% more than the ₹27 billion (~$324.2 million) they earned in Q2 of FY 2023.
They sold more products in the car, telecom, and UPS markets. Their new energy business also did well. They make different kinds of products, such as batteries, battery cells, EV chargers, battery packs, lubricants, and new chemicals. They made ₹28.09 billion (~$337.3 million) from their lead-acid batteries alone. This was 6.4% more than the ₹26.39 billion (~$316.9 million) they made from them last year.
“In the New Energy segment, we have seen healthy growth from chargers and increasing interest in cells and battery packs. Our work on the Gigafactory and e+ Energy Labs, the advanced energy research and innovation center, is progressing smoothly, and we are keeping a close eye on the evolving market conditions in this space,” .Vikramadithya Gourineni, Executive Director of New Energy Business
They will also get some benefits from the government, such as subsidies and incentives worth more than ₹500 billion (~$6 billion). They also see that more people want to buy electric vehicles (EVs). This will help them grow in some markets. They have a big plan to build a Giga Corridor in Telangana, along with an E+ve Energy Labs in Hyderabad. They have got 262 acres of land for this. They want to make 16 GWh of cell capacity in the next 10 years.
They hope to start selling their products by FY26. 1H 2023 In the first half (1H) of the year, Amara Raja made a profit of ₹4.18 billion (~$50.1 million).
This was 25.6% more than the ₹3.33 billion (~$39.9 million) they made in the first half of last year. They also earned ₹57.55 billion (~$691.1 million) in the first half of the year, which was 8.2% more than the ₹53.21 million (~$638,977) they earned in the first half of last year. Their EBITDA was ₹7.54 billion (~$90.5 million), which was 21.6% more than last year.
They have started building Telangana’s first gigafactory for making battery cells and packs in Mahbubnagar district.
As per Mercom, Amara Raja worked with Tirupati Municipal Corporation to set up EV charging stations and battery swapping stations in Tirupati, Andhra Pradesh. Amara Raja Group also won a part of a project from NTPC, a power company. The project is to build a 735 (3*245) MW solar plant in Nokh, Rajasthan. Amara Raja Group won the second part of the project, which is 245 MW, by bidding ₹17.14 million (~$228,656)/MW.
Content Credit: Mercom