Services
GST Registration Online
Amara Raja shares rally 4% as Hyundai adopts Made-in-India battery technology
Sandip Raj Gupta
20/Dec/2024
What's Covered Under the Article
- Hyundai adopts Amara Raja's indigenously developed AGM battery technology for its Indian vehicles.
- Amara Raja shares rally by 4.5%, driven by localization and growing market trust.
- Amara Raja reports an 11.6% YoY revenue growth and a 6.3% rise in Q2 FY25 net profit.
Amara Raja Shares Surge on Hyundai Collaboration
Amara Raja Energy & Mobility, a leading Indian player in the energy and mobility space, witnessed a 4.5% surge in its stock price on December 2, 2024, reaching an intraday high of ₹1,275. This rally followed Hyundai Motor India’s announcement to adopt Amaron’s Absorbent Glass Mat (AGM) battery technology across its domestic vehicle lineup.
The adoption of AGM battery technology under Hyundai’s existing procurement agreement with Amara Raja Energy & Mobility represents a significant milestone. The indigenously developed AGM batteries are designed specifically for Starting, Lighting, and Ignition (SLI) purposes.
The company stated, “Hyundai Motor India Limited (HMIL) will integrate AMARON’s 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 ongoing efforts to boost localization and provide innovative solutions to Indian consumers.
What Makes AGM Battery Technology Significant?
AGM (Absorbent Glass Mat) battery technology is a modern innovation designed to deliver superior performance, durability, and efficiency for automotive applications. Key advantages include:
- Enhanced starting power for vehicles.
- Longer lifespan and reduced maintenance compared to traditional lead-acid batteries.
- Eco-friendly and aligned with sustainability goals, as it minimizes leakage and wastage.
Hyundai’s decision to adopt Amara Raja’s AGM technology underscores the company’s confidence in Made-in-India innovations and further strengthens Amara Raja’s position as a leader in the automotive battery segment.
Amara Raja’s Financial Performance
Amara Raja Energy & Mobility, formerly Amara Raja Batteries Limited, has shown consistent growth across multiple industries, including automotive, telecom, power, and railways.
In Q2 FY25, the company reported:
- Revenue Growth: ₹3,135.8 crore, an 11.6% increase from ₹2,811.1 crore in Q2 FY24.
- Net Profit: ₹240.7 crore, up 6.3% YoY from ₹226.4 crore.
- Ebitda Growth: ₹440.7 crore, a 7.5% rise. However, the Ebitda margin dipped slightly to 14.1% compared to 14.6% in the previous year.
Despite the margin dip, the company's financial performance reflects its robust market position and operational efficiency.
Stock Market Performance
As of 10:47 AM on December 2, 2024, Amara Raja's stock was trading at ₹1,233, representing a 1% rise from the previous close. The company’s shares have seen a 50% rally since the beginning of 2024, indicating strong investor confidence and growth momentum.
Conclusion
Hyundai’s adoption of Amaron’s AGM battery technology marks a significant milestone in the Indian automotive industry’s localization efforts. It not only highlights the growing adoption of indigenous technologies but also boosts Amara Raja’s reputation as a trusted supplier of innovative energy solutions.
With its solid financial performance and strategic partnerships, Amara Raja Energy & Mobility continues to strengthen its foothold in the energy and mobility space, positioning itself as a key player in the transition toward sustainable and efficient battery technologies.
The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial.
The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro, Newmalayan Steel, Identical Brain Studios.