Amara Raja Net Sales up 51%; PAT up 177%

• Topline at Rs 1320.21 million, up 51% over Q2 last year
• PAT at Rs 127.11 million, up 177%

Shanghai, October 26, 2006: Industrial and Automotive Battery major Amara Raja Batteries Limited (BSE Code: 500008 & NSE Code: AMARAJABAT) has recorded revenues of Rs. 1340.18 million, PBT of Rs.193.83 million and PAT of Rs. 127.11 million for the second quarter of FY 2006-07. Quarter on quarter, the top line has grown by 51% while PAT rose 177%.

Announcing the company’s Q2 results, Managing Director Mr Jayadev Galla said, "We have continued to beat the market with 51% growth quarter on quarter. Our Industrial Battery division has shown good growth fed by the surging expansion in cellular networks and UPS sectors, and also the increasing volumes in the railways and power sectors. The automotive business growth has come from increasing depth and breadth in OE relationships and aftermarket retail," added Mr Jayadev Galla. "High lead prices are a concern for the Battery Industry and at Amara Raja we are continuously working on our operational efficiencies. Our growth in top line and increased scale of operations should help minimise the impact of high Lead prices".

Mr. Ramachandra Galla, Chairman, said, "It is heartening to see the consistent growth in top line and bottom line quarter after quarter. We expect to maintain our growth in volumes with our capacity expansion plans going as per schedule."

The Company currently has a pan-India sales and service network with 136 franchisees, 99 Pit Stops and over 12,500 active retailers. Amara Raja continues to focus on increasing export volumes - both in Industrial and Automotive.

Mr. Gopal Mahadevan, Chief Financial Officer, said, "Our ongoing focus on improving efficiencies combined with the growth in top line has resulted in improved margins. Our capacity expansion is on course, which will add to the company’s growth once the expansion is on stream."

Source : Equity Bulls

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