The shares of one of the largest automotive battery manufacturers rose 6% to ₹1,594 per share on monday after the company signed an MoU with Piaggio India to develop and supply Lithium-Ion cells and chargers for its Electric Vehicles.
At 10:50 a.m., Amara Raja Energy & Mobility Ltd shares were trading at ₹1,583.50 per share, up 5.35% from the previous close price. The company has a market capitalization of ₹29,210 crores.
What is the news:
Amara Raja Advanced Cell Technologies Private Limited (ARACT), a wholly owned subsidiary of Amara Raja Energy & Mobility Limited (ARE&M), has entered into a Memorandum of Understanding (MoU) with Piaggio Vehicles Private Limited, the Indian subsidiary of the Italian Piaggio Group, according to the exchange filing.
Under this agreement, Amara Raja will work closely with Piaggio India to develop and supply LFP (Lithium Iron Phosphate) Lithium-Ion (Li-ion) cells and chargers for its Electric Vehicles. Additionally, they will collaborate on developing cells and battery packs for Piaggio’s upcoming models, which will be manufactured locally at Amara Raja’s Gigafactory in Divitipally, Telangana.
Furthermore, Amara Raja Advanced Cell Technologies Private Limited (ARACT) is set to sign a separate MoU with Ather Energy to jointly develop and supply advanced lithium-ion cells, including NMC (Nickel Manganese Cobalt) and LFP chemistries.
About the company:
Amara Raja Energy & Mobility Limited (ARE&M) offers a broad array of solutions and products, including energy storage systems, lithium-ion cell manufacturing, EV chargers, battery pack assembly, and automotive and industrial lubricants. The company is a leading manufacturer of energy storage products for industrial and automotive use in India.
ARE&M is also one of the largest manufacturers of energy storage products for both industrial and automotive applications in India. Amara Raja is the preferred supplier to major telecom service providers, telecom equipment manufacturers, the UPS sector (OEM & Replacement), Indian Railways, and the Power, Oil & Gas industry segments.
Since 2020, Amara Raja & Piaggio India have partnered to bring in transformation in the transportation sector. Amara Raja has manufactured and supplied 50,000 NMC Li-ion battery packs and EV chargers exclusively to Piaggio India which has had a cumulative run of over 120 crore kms till now.
Management Guidance:
Amara Raja Energy & Mobility had announced an investment outlay of ₹9,500 crores to establish a 16Gwh capacity gigafactory in Telangana. Additionally, the company is all set to lead India’s R&D capabilities by establishing a state-of-the-art advanced research and innovation center called ‘ePositive Energy Labs’ in Hyderabad.
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Financials:
The company has achieved an 8.4% year-on-year revenue growth, increasing from ₹10,390 crore in FY22-23 to ₹11,260 crore in FY23-24. During the same period, net profit surged by 24%, rising from ₹731 crore to ₹906 crore.
Amara Raja Energy & Mobility shares have experienced significant gains, rising by 86% in the last six months and 157% over the past year.
Written by Omkar Chitnis
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