Shares of Amara Raja Batteries jumped over 8 percent on Monday after the company reported its highest-ever net profit of Rs 219 crore, up 82 percent on year-on-year (YoY) basis despite challenges in the automobile sector. It reported a profit of Rs 120.23 crore for the corresponding quarter in the previous financial year.

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The stock rose as much as 8.4 percent to Rs 709.50 per share on BSE. At 12:49 pm, the stock was trading 8.2 percent higher at Rs 707.60 as compared to a 0.36 percent or 144 points fall in BSE Sensex at 40,179.

The company reported 370 basis points improvement in pure earnings (EBITDA) margin at 17.2 percent in the September 2019 quarter (Q2FY20) on account of softer commodity prices.

However, the batteries major's revenue fell 3 percent to Rs 1695.31 crore in Q2FY20 as against Rs 1753.05 crore in the year-ago quarter. The Board of the Directors of the company declared Rs 6 per equity share (representing 600 percent) on the face value of Re 1 each as interim dividend for the financial year 2019-20.

Commenting on the Q2 performance, Jayadev Galla, the vice-chairman and managing director of Amara Raja Batteries, said, "While we are encouraged by the continued growth of our brands in replacement markets in both domestic and international markets, we are cautiously evaluating the trends in OE segment and calibrating our investment plans appropriately. We believe that continued technology upgradation and widening product portfolio to meet emerging customer needs will help us navigate through the demand cycles and sustain our growth momentum."

Amara Raja Batteries is a manufacturer of lead-acid storage batteries for industrial and automotive applications in India. The firm's products are supplied to various user segments, such as telecom, railways, power control, and solar sectors.

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