Financial Daily from THE HINDU group of publications
Saturday, Oct 29, 2005
Financial Daily from THE HINDU group of publications Saturday, Oct 29, 2005 |
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Corporate
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New Projects Corporate Results - Automobile Components Amara Raja announces Rs 11.60-cr expansion — Q2 net profit up 21 pc Our Bureau
Chennai , Oct. 28 AMARA Raja Batteries Ltd has announced capacity expansion of its automotive range of batteries from 2.4 million units a year to 3 million. The Rs 11.60-crore project is expected to be completed by the second quarter of next year. In January, the company announced capacity expansion from 1.5 million units to 2.4 million. This is expected to cost Rs 38 crore and should be completed by December. Amara Raja Batteries has said that in the second quarter of the current year, the company achieved a turnover of Rs 87 crore, compared with Rs 51.6 crore in the same period last year — a growth of 68 per cent. Net profit increased to Rs 4.58 crore from Rs 3.76 crore. When asked about a net profit increase of 21 per cent when topline increased by 68 per cent, a senior official of the company told Business Line that in the second quarter of last year, the company had under-estimated the provision for taxation and hence provided lesser for that quarter. The official pointed to the profit before tax for the quarter under review. The PBT for Q2 the current year increased to Rs 8.1 crore, from Rs 4.5 crore in the same quarter last year — a rise of 80 per cent. According to a press release from Amara Raja Batteries, lead prices and depreciation of the rupee were the main areas of concern. The company imports lead for its lead-acid batteries. The official said Amara Raja was watching the rupee movement carefully to take a call on when and to what extent to take to hedging instruments.
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