New Delhi, Nov 2 (PTI) Amara Raja Energy & Mobility Ltd on Monday reported a 44.8 per cent decline in its consolidated net profit to Rs 152.5 crore in the second quarter, down from Rs 276.5 crore in the year-ago period, due to higher costs.
For the quarter ended September, revenue from operations increased to Rs 4,108.7 crore from Rs 3,467 crore in the same period last year.
EBITDA declined 3.4 per cent to Rs 361.6 crore from Rs 374.3 crore, and EBITDA margin narrowed to 8.8 per cent from 10.8 per cent, according to the company's investor presentation.
Higher raw material costs resulted in higher expenses during the quarter, impacting its profitability. Total expenses increased by 20.6 per cent to Rs 3,922.8 crore from Rs 3,252 crore, mainly due to higher raw material costs.
Meanwhile, the board approved setting up a wholly owned subsidiary with an initial investment of up to Rs 100 crore in equity, loans or other securities, in one or more tranches.
Amara Raja noted that this subsidiary will provide automotive, battery and spare-parts services under the Amaron Assist brand. The business will focus on automotive maintenance, battery services, vehicle care and mobility assistance.
The company also said its subsidiary, Amara Raja Advanced Cell Technologies, has approved capital expenditure of Rs 2,320 crore. This will expand battery pack manufacturing capacity to 9 GWh from 4 GWh and fund the LFP cell manufacturing plant at its Giga Corridor in Telangana.
