Shares of Amara Raja Batteries
have declined 8% to Rs 760 per share, extending their 5% fall on Friday on the BSE
after the company reported a lower than expected 10.7% growth in standalone net profit at Rs 1.1 billion in March quarter (Q4FY18). Analysts on an average had expected profit of Rs 1.26 billion for the quarter.
Net revenue from operations during the quarter under review increased 17.5% at Rs 15.80 billion against Rs 13.44 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) margin declined 40 basis points to 13.3% from 13.7%.
“The buoyancy in automotive sector presents us significant opportunities to continue our own growth momentum. This has helped the company to offset some of the impact due to subdued telecom demand. The electric mobility and energy storage opportunities will open up new growth avenues for us and we will continue to invest in strengthening the brands, distribution channels, technology and manufacturing capacities to further consolidate our market position,” said Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries.
At 11:30 am; the stock was trading 6% lower at Rs 777 on the BSE, against 0.21% decline in the S&P BSE
Sensex. The trading volumes on the counter more than doubled with a combined 1.21 million shares changed hands on the BSE