Amara Raja Batteries Ltd reported a 53% jump in third-quarter profit on Wednesday, driven by strong demand from automakers and telecom companies that were rolling out 5G services in India.
The lead-acid battery maker's consolidated net profit after tax rose to 2.22 billion rupees ($27.23 million) in the quarter ended Dec. 31 from 1.45 billion rupees a year earlier.
Indian automakers have seen sales, especially of utility vehicles, remain strong during the festive season and as availability of semiconductor chips improved. That has, in turn, boosted auto ancillary companies like Amara Raja Batteries.
The maker of Amaron batteries said revenue from operations rose 11.5% to 26.38 billion rupees.
The roll-out of 5G services after mega auctions last year has also lifted demand for the company's industrial battery division, which deals with telecom service providers, equipment manufacturers and power supply sector.
However, total expenses rose 8.1% to 23.64 billion rupees as cost of materials consumed rose more than 7%.
Late last year, the company said that it plans to invest 95 billion rupees over the next 10 years for the proposed lithium cell gigafactory in southern-Indian state of Telangana.
