Shares of Amara Raja Energy & Mobility jumped over 4% to touch Rs 1,275 in early trade on December 2 after the company announced a major collaboration with Hyundai Motor India. Hyundai will integrate AMARON’s Absorbent Glass Mat (AGM) battery technology into its domestic vehicle lineup. This development makes Hyundai the first Indian automaker to adopt AGM technology developed locally.
The AGM batteries, designed for Starting, Lighting, and Ignition (SLI), will be supplied under Hyundai’s ongoing procurement agreement with Amara Raja. The rollout of these batteries is expected in the fourth quarter of FY 2024-25.
In its exchange filing, the company highlighted Hyundai’s focus on localization and innovation, stating that this partnership underscores its commitment to offering high-quality, locally sourced solutions to Indian consumers.
Company Background and Financial Performance
Amara Raja Energy & Mobility, earlier known as Amara Raja Batteries Limited, is the leading name in the energy and mobility sector of India. It is one of the largest producers of lead-acid batteries, catering to diversified industry segments such as automotive, telecom, railways, and power.
The company said net profit surged 6.3% to Rs 240.7 crore in Q2 FY25 over Rs 226.4 crore for the quarter ended September 2023. Revenue from operations grew 11.6% to Rs 3,135.8 crore as compared to Rs 2,811.1 crore in the year-ago period.
EBITDA grew 7.5% to Rs 440.7 crore, while the EBITDA margin was down 50 bps at 14.1% against 14.6% in the corresponding period of the previous year.
At 10:47 am, Amara Raja shares were trading at Rs 1,233 up over 1% during the day. The scrip has returned 50% since the start of the year, in one of the strongest rallies for the stock in 2023.
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Source: Moneycontrol
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