Amara Raja Energy & Mobility announces 4% revenue growth in Q2 FY’24
Amara Raja Energy & Mobility Limited (ARE&M), previously known as Amara Raja Batteries Limited, reported a 4% increase in revenues and a 6% rise in profit before tax for the second quarter of Fiscal Year 2024. The company, trading under BSE: 500008 and NSE Code: ARE&M, also announced a noteworthy interim dividend of Rs. 4.80 (480%).
Standalone and Consolidated Financial Highlights
The company’s financial performance for the quarter ending September 30, 2023, showcased robust growth. Standalone revenue from operations reached ₹2,810.76 crores, while consolidated revenues amounted to ₹2,959.34 crores, both indicating a positive trajectory over the corresponding quarter in the previous year. The profit before tax stood at ₹293.46 crores and ₹309.80 crores for standalone and consolidated reports, respectively.
Sector-Wise Performance and Strategic Initiatives
The revenue growth was primarily driven by increased volumes in the automotive aftermarket, along with contributions from the telecom and UPS segments. ARE&M’s New Energy business also demonstrated significant growth. Executive Director Harshavardhana Gourineni emphasized the consistent performance in automotive and industrial businesses, expansion into new geographies, and the development of new customer partnerships.
Focusing on New Energy and Innovation
Executive Director Vikramadithya Gourineni highlighted the growth in the New Energy segment, including advancements in chargers, cells, and battery packs. He mentioned the ongoing work on the Gigafactory and e+ Energy Labs, indicating a strategic focus on market trends and innovations in energy and mobility.
Transitioning from Battery Maker to Comprehensive Solutions Provider
Chairman & Managing Director Jayadev Galla reflected on the company’s significant shift in identity and strategy. The renaming from Amara Raja Batteries to Amara Raja Energy & Mobility marks the company’s evolution and commitment to becoming a comprehensive solutions provider, moving beyond its original scope as a battery manufacturer. This strategic change aims to align with the rapidly evolving demands of the energy and mobility sectors.