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Amara Raja's profit drops 34% despite 4% rise in revenue
Amara Raja Energy & Mobility just posted a 34% drop in net profit for the first quarter—down to ₹165 crore from ₹249 crore last year.
Interestingly, their revenue still grew by 4.2%, reaching ₹3,401 crore.
Higher costs mean the company is earning less on each rupee
Even with more money coming in, higher costs meant EBITDA fell 17% to ₹363 crore, and margins slipped from 13.4% to 11%.
Basically, the company is earning less on each rupee it brings in.
Investors are watching profits closely
After these results, Amara Raja's stock dipped slightly and is now down over 20% for the year.
The numbers show that investors are watching profits closely—even when sales are up.