Amara Raja Batteries took an early morning plunge on BSE after turning out a fall in operating profit for FY 2002-03.

The scrip of the VLR and automotive and batteries maker dived 9.5% to Rs 74 barely as trading commenced today. Around 7,300 Amara Raja Batteries (ARBL) shares changed hands on BSE so far.

In contrast, the stock has been sailing higher over recent weeks on the strength of a number of export wins. From a low of Rs 48 on 31 March 2003, the stock had gained 70.6% to Rs 81.90 just ahead of the announcement of results on Friday, 20 June 2003. That was the highest closing for the stock in recent months. The stock is usually thinly traded.

On Friday, the batteries maker reported an 18.7% fall in operating profit (operating profit before interest, deferred revenue expenses amortisation and depreciation) to Rs 29.26 crore (Rs 36 crore). Net profit plunged 59.3% due to a rise in deferred revenue expenditure (deferred revenue expenditure pertains to expenses incurred in the prior years for promotion of automotive batteries written off during the period) to Rs 7.40 crore (Rs 18.22 crore). Deferred revenue expenditure surged 148.8% in FY 2002-03 to Rs 5.45 crore from Rs 2.19 crore in FY 2002.

Last week, Amara Rajaj Batteries announced the bagging of a slew of orders in overseas markets. One particular order came from an unnamed automotive player in Japan for the delivery of automotive batteries for passenger cars . The order, valued at Rs 1 crore, will be executed over the next one year. Another order happens to be from Singapore, for the installation of 15,000 batteries in the "ComfortDelgro Cabs" to meet 100% of the latter's requirements. This order is worth Rs 1.50 crore and will be executed over the next one year as well. Amaron Hi-Life is being retailed in Singapore through a tie up with Nam Wah Battery Co. The company has received an order worth Rs 0.5 crore for 4,000 batteries to service the largest fleet of government taxis in Dubai from Dubai Transport Services. ARBL has also partnered with CARS (Computerized Auto Repairs and Services) for retailing Amron Hi-Life for the replacement market. The company has managed to find a foothold in over 10 countries including Taiwan, Philippines, Nepal, Sri Lanka, the UK, Cyprus and Greece, it said in a statement.

ARBL makes VRLA batteries and automotive batteries and catering to industries such as power, oil & gas and UPS systems. Johnson Controls of US has a 26% stake in ARBL. The other promoter is the Galla family, which holds 26% stake. Johnson Control is also a technical collaborator.

The company's clientele in India includes Siemens, Lucent, Alcatel, VSNL, and Indian Railways.

Earlier, there were reports that ARBL was in talks with Johnson Controls to export batteries to the US under the label, Bosch.