Amara Raja Batteries rebrands as Amara Raja Energy & Mobilityand and sees a Rise in Shares
According to a statement, Amara Raja Batteries Limited would become Amara Raja Energy and Mobility Ltd. (ARE&M). The business claimed that the strategic shift demonstrates its dedication to its new position as a full-service solutions supplier in the energy and mobility industries.
Following the news, Amara Raja Batteries stock increased on the stock exchanges. Amara Raja Batteries shares were trading at Rs 641.80 at 11:10 a.m., up 0.49 percent.
One of the biggest producers of energy storage solutions for both industrial and automotive applications in the Indian battery market is Amara Raja Energy and Mobility, formerly known as Amara Raja Batteries.
According to a regulatory filing by the firm to the stock exchanges, it is the chosen supplier to major telecom service providers, telecom equipment manufacturers, the UPS sector (OEM & Replacement), Indian Railways, and the power, oil & gas, among other industry segments.
Automotive batteries, industrial batteries, battery energy storage solutions, lithium-ion cell manufacturing, a variety of EV chargers, lithium-ion battery pack assembly, renewable energy storage solutions, battery management systems, and lubricants are just a few of the services and goods Amara Raja Energy & Mobility Limited (ARE&M) provides.
The rebranding, according to the business, is the result of a two-year process to change from a battery producer to a full-service provider of solutions for the energy and mobility industries.
The new strategy for the company will be based on two pillars: maximizing value in the current lead-acid battery business channel and related products, as well as promoting the expansion of the new energy industry.
In order to house the Li-ion initiatives, a subsidiary called Amara Raja Advanced Cell Technologies Private Limited (ARACT) was founded in November 2022. As part of these initiatives, the company is building a 16Gwh Gigafactory for producing cells and battery packs as well as a cutting-edge collaborative R&D facility called the E Positive Energy Labs.
Amara Raja Batteries declared profit before tax of Rs 258.35 crores for the first quarter of FY24 last month, representing a growth rate of 46% over the first quarter of FY23. The EPS for the first quarter of FY 24 is Rs 11.27.
Healthy volume increase in the automotive aftermarket, telecom, and UPS categories, as well as from those markets helped to support the revenue rise.
The battery manufacturer’s operational revenue for the first quarter of the current fiscal year totaled Rs 2,795.51 crore, up 14% from Rs 2,620.53 crore in the corresponding quarter last year.
The business claimed that the significant volume growth seen in the automotive aftermarket as well as the telecom and UPS categories contributed to the revenue growth.
“We have witnessed significant growth in revenue and profits quarter on quarter, which is a direct testament to the customer’s trust in our product’s quality and reliability. With our rapid movement in the Li-ion initiatives, we are poised for a strong future,” said Jayadev Galla, Chairman and Managing Director, Amara Raja Batteries.
The business is a top producer of automobile batteries under the trademarks Amaron and PowerzoneTM, which are sold and serviced through a broad retail network throughout India. It provides auto batteries to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors through OE agreements.