Amara Raja Batteries recorded a consolidated net profit of ₹2.02 billion (~$24.54 million) in the second quarter (Q2) of the financial year (FY) 2023, a jump of 40% year-over-year (YoY).

The company, which makes lead-acid and other storage batteries, said that the rise in net profit was mainly due to the robust demand for batteries in the automotive sector from the aftermarket and original equipment manufacturing segments.

In its board meeting, the company decided to incorporate its wholly-owned subsidiary − Amara Raja Advance Cell Company – to manufacture Li-ion batteries. The company will invest ₹5 billion (~$60.81 million) in equity, loan, or other kinds of securities in one or more tranches.

The subsidiary will develop and manufacture advanced energy storage technology products and solutions, including Li-ion cells and battery packs, to provide energy storage systems for electric mobility and stationary storage markets.

The battery maker recorded an income of ₹27.23 billion (~$331.22 million) in the July-September quarter, a YoY increase of 19%.

On a sequential basis, the company’s net profit increased by 54% in Q2. The income increased by 3% in Q2 over Q1.

Battery exports showed healthy growth in the Middle East and Southeast Asian markets. The company said that industrial battery volumes continued their upswing, especially in India’s telecom segment, driven by 5G rollout preparations.

The net profit of the first half (1H) 2023 stood at ₹3.33 billion (~$40.46 million), a YoY increase of 24%. The income for 1H 2023 is ₹53.6 billion (~$651.38 million), up 28% YoY.

In December last year, Amara Raja Batteries announced a plan to invest in European EV battery manufacturer InoBat Auto. The initial investment will give Amara Raja a key foothold in the thriving European EV ecosystem.

Earlier, Amara Raja had led Bengaluru-headquartered advanced battery and fuel cell technology company Log 9 Materials’ $8.5 million Series A+ funding round. Log9 had entered into an equity partnership and collaboration with Amara Raja Batteries. Amara Raja was the anchor investor in the funding round, investing $5 million.

In June 2020, Amara Raja Batteries entered into an agreement with Gridtential Energy to collaborate on bipolar battery technology. Under the agreement, they intended to assemble and test reference batteries using Amara Raja’s active material and work on improving their life cycle, energy density, efficiency, charging rates, and manufacturability.

Amara Raja Group was one of the winners in NTPC’s auction for a balance of systems package for the 735 (3*245) MW Nokh solar project in Rajasthan. Amara Raja Group won the bid for the second block of 245 MW by quoting ₹17.14 million (~$228,656)/MW.