Amara Raja Batteries jumps 11% after Q2 numbers, announcement of subsidiary

New Delhi: Shares of Amara Raja Batteries zoomed 11% during the early trade on Friday after the company announced Li-Ion battery manufacturing subsidiary following a strong performance in September 2022 quarter.

The industrial and automotive battery major reported a net profit of Rs 109.73 crore in the quarter ended September 30, 2022. The company had reported a net loss of Rs 1.82 crore in the year-ago period.

The company announced the incorporation of a wholly-owned subsidiary that will set up a multi-gigawatt hour lithium-ion cell manufacturing facility, as it intends to establish a domestic manufacturing eco-system for the same.

Following the announcements, shares of Amara Raja Batteries surged more than 11% to Rs 577, before trading at Rs 576.95 at 10 am. The scrip had settled at Rs 519.80 on Thursday.

Amara Raja's revenue from operations jumped over 19% YoY to Rs 2,699.46 crore during the quarter ended September 30, 2022. It had reported an operational revenue of Rs 2,264.19 crore in the July-September 2021 period.

The company witnessed robust demand in the automotive sector from the aftermarket as well as OEM segments. Exports showed very healthy growth in Middle East and South East Asian markets.

However, the performance of the stock has been mixed in 2022 so far. Despite a close to 20% rally in the last one month, the counter is about 10% down on a year-to-date (YTD) basis.

The company announced an interim dividend of Rs 2.90 per equity share of the face value of Rs 1 each and the record date for the same has been fixed as November 16, 2022. The dividend will be paid on or before December 2, 2022, it said.