ARBL stocks break down on the day of results

Amara Raja Batteries, the leading battery makers and power solutions provider has declared its Q4FY16 results on Wednesday, wherein for the March quarter the company has reported a net profit of Rs 109 crores. Net profits have seen a surge of 6 per cent as compared to Q4FY15. EBITDA for the period stands at 190.75 Rs crores. Total income from operations stands at Rs 1169.65 crore for the quarter as against Rs 1069.84 crore for the corresponding period of the previous fiscal.

On a YoY basis, net profits after minority interest stands at Rs 489.44 crores , whereas for the previous fiscal it stood at Rs 410.86 crores. Net profit has increased by 19 per cent. EBITDA stands at Rs 816.86 crores and has increased by 12 per cent from the previous year. Consolidated total income for the period stands at Rs 4690.67 crores.

On a CAGR basis, EBITDA and net profits for the period of 3 years have grown by 6 per cent and 9 per cent respectively.

Amara Raja Batteries is an Indian company which produces lead acid storage batteries. Their segment includes industrial batteries (amaron sleek, amaron quanta, amaron volt, power stack) and automotive batteries (PRO, FLO, GO, Black, Fresh, Hi-way, Harvest, Shield, PRO bike rider and optima). 

The shares on Wednesday have slumped over 5 per cent, and are trading at Rs 854. The company’s Q4FY16 profit has been down by 20 per cent as compared to Q3FY16 and this is the reason for the shares plunge despite posting positive yearly numbers.

Technically, the stock has taken a multiple resistance at Rs 960 levels and has given its third straight fall.