Higher expenses pare Amara Raja Batteries' Q4 net by 9% to Rs 99 cr

Higher expenses pare Amara Raja Batteries' Q4 net by 9% to Rs 99 cr

  Amara Raja Batteries posted a nine per cent decrease in net profit at Rs 99.19 crore in the fourth quarter of 2016-17, as compared with Rs 109.06 crore in the corresponding quarter the previous financial year.

However, its total income was up 18 per cent to Rs 1,526.99 crore during January-March this year, from Rs 1,296.04 crore in the same quarter a year ago.

The automobile storage battery maker's expenses rose 22 per cent tp Rs 1,378.95 crore during the quarter under review, from Rs 1,132.81 crore a year ago.

The Hyderabad-based company has registered a marginal decline in net profit at Rs 478.49 crore in the full year ended March, 2017 as compared to Rs 491.63 crore during the previous fiscal. Again, total income grew 15.3 per cent at Rs 6,030.63 crore, while its overall expenses rose 18.2 per cent at Rs 5,328.42 crore in 2016-17 over that of the previous fiscal.

According to the company, its automotive battery business has witnessed a strong performance across original equipment manufacturers (OEMs) and after market segments. The capacity expansion plans have been on target which helped to meet increasing demand for its brands as well as enabled growth in export volumes during the year.

"We have created adequate capacities for further growth of business and brand visibility. Our capacity led growth strategy has paid dividends with further strengthening of automotive battery brands," Amara Raja Batteries vice chairman and managing director Jayadev Galla said.

The company's board of directors recommended 425 per cent dividend at Rs 4.25 per equity share of worth Re 1 each for the financial year 2016-17.