20 Dec , 2024 By : Debdeep Gupta
Amara Raja Energy & Mobility shares climbed as much as 4.5 percent to reach Rs 1,275 in morning trade on December 2 after the company announced that Hyundai Motor India would adopt AMARON’s Absorbent Glass Mat (AGM) battery technology across its domestic vehicle lineup.
These AGM batteries, designed for Starting, Lighting, and Ignition (SLI) purposes, will be supplied under Hyundai’s existing procurement agreement with Amara Raja Energy & Mobility. In a filing to the exchange, the company stated, "Hyundai Motor India Limited (HMIL) will integrate AMARON’s indigenously developed AGM battery technology into its domestic models. This marks the first instance of an Indian auto manufacturer adopting localized AGM technology, with rollout expected in the fourth quarter of FY 2024-25."
The move aligns with Hyundai's commitment to enhancing localization and offering innovative, locally sourced solutions to Indian consumers.
Amara Raja Energy & Mobility, previously known as Amara Raja Batteries Limited, is a key player in the energy and mobility sector and one of India’s largest producers of lead-acid batteries. The company caters to diverse industries, including telecom, power, oil and gas, railways, and the automotive sector.
In its financial performance, the company posted a 6.3 percent year-on-year rise in net profit to Rs 240.7 crore for the second quarter of FY25, up from Rs 226.4 crore in the same period last year. Revenue from operations grew by 11.6 percent to Rs 3,135.8 crore compared to Rs 2,811.1 crore a year earlier.
Earnings before interest, tax, depreciation, and amortization (Ebitda) increased by 7.5 percent to Rs 440.7 crore, although the EBITDA margin dipped slightly to 14.1 percent from 14.6 percent in the year-ago period.
At about 10:47 am, shares of the company were trading at Rs 1,233, higher by over a percent. Amara Raja shares have rallied 50 percent since the start of the year.
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