Amara Raja Q1 net profit rises 25.6%; Stock down 5% amid market rout

Amara Raja Energy & Mobility reported a 25.6% year-on-year (YoY) rise in its Q1FY25 net profit to ₹249 crore. The company’s consolidated operational revenue jumped 16.7% YoY to ₹3,263 crore during the quarter. Despite the rise in net profits and revenue, shares of the company were under pressure and were trading lower by over 3% at ₹1,562.35.

During the quarter, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 19% YoY to ₹437 crore. The EBITDA margins for the quarter expanded by 26 basis points (bps) to 13.4% while the net profit margins saw an expansion of 54 bps to 7.6%.

The company’s earnings per share (EPS) grew by 25.6% YoY to ₹13.61 In Q1FY25, the company’s lead acid segment made up 96% of the revenue while other segments made up the remaining 4% of the revenue. From a geographical point of view, 86% of the company’s revenue came from domestic sales while 14% came through exports.

The lead acid segment grew 16.68% YoY to ₹3,137 crore while other business segments saw a growth of 16.8% YoY to ₹125 crore. The company stated that revenue growth during the quarter came on the back of high volumes in the automotive after-market, OEMS, and export markets.

Vikramadithya Gourineni, executive director of the New Energy Business at Amara Raja Energy & Mobility said, the company has seen strong growth in the chargers and batteries pack business and has formed new partnerships to support the segment. The company also reported that the construction of its cell manufacturing facility is underway.

“We have seen healthy growth from our chargers and battery packs business and have successfully forged partnerships with GIB and Highstar for our cell technology and commercialisation,” he said.

Shares of the company have risen by nearly 90% since the beginning of the year. The stock has gained over 149% in the past year.