Amara Raja Energy and Mobility Ltd, a leading battery manufacturer, has reported a robust 24 percent growth in its net profit for the financial year 2024 compared to the previous year. The company attributed this growth to significant improvements in its lead acid battery business and the successful performance of its new energy segment.
The Hyderabad-based company’s standalone net profit for FY24 reached Rs 905.9 crore, a substantial increase from Rs 730.7 crore in the previous fiscal year. Revenue from operations also witnessed a notable uptick, rising by 8.4 percent to Rs 11,260.3 crore.
“In the lead acid battery business, strong volume growth momentum continued in both automotive and industrial applications across all customer segments,” the company stated. The introduction of new products and brands in the automotive aftermarket and data center segments contributed to this growth trajectory.
The New Energy Business segment recorded an impressive growth rate of 110 percent over the previous year, consolidating the company’s leadership position with its customers. “This remarkable performance underscores our commitment to innovation and customer satisfaction,” remarked Vikramadithya Gourineni, Executive Director of New Energy Business.
During FY24, the company’s EBITDA, or operating profit, increased by 13 percent to Rs 1,621.4 crore, with an improved EBITDA margin of 14.4 percent compared to 13.8 percent in FY23. The growth rate of net profit was further boosted by a one-time loss of Rs 47.7 crore recorded in FY23 due to a fire incident at the company’s Chittoor factory.
For the quarter ended March, Amara Raja’s standalone net profit surged to Rs 228 crore, up from Rs 141 crore in the corresponding period of the previous year. Revenue from operations grew by 15 percent to Rs 2,796.73 crore, while EBITDA rose by 15.5 percent to Rs 407.7 crore.
The company’s board has recommended a final dividend of Rs 5.10 for the financial year 2024, reflecting its commitment to value creation for shareholders and its confidence in sustained growth prospects.