Amber Enterprises Q2 Results Tops Analyst Estimates On All Fronts
The company's consumer and electronics division almost doubled in revenue terms compared to last financial year, while operating Ebitda tripled for these divisions.
Amber Enterprises India Ltd. on Tuesday posted an 81% growth in revenue for the second quarter of the current financial year at Rs 1,685 crore against Rs 927 crore that it had reported for a similar period of the last fiscal.
In the July-September quarter, Ebitda rose 91% to Rs 114 crore compared to Rs 59.6 crore that it had reported during the year-ago period. A Bloomberg consensus had estimated a 30% and 41% rise in both revenue.
Over the past few quarters, the company launched new products like tower air conditioners, window top throw inverter series, tropical high efficiency split air conditioners, and cassette air conditioners, and that has aided in the sales growth this year.
Amber Enterprises Q2 Earnings Highlights (Consolidated, YoY)
Revenue up 81% to Rs 1,685 crore to Rs 927 crore (Bloomberg estimate was Rs 1,204 crore )
Ebitda rose 91% to Rs 114 crore versus Rs 59.6 crore (Bloomberg estimate was Rs 83 crore)
Margin up 40 basis points to 6.8% versus 6.4% (Bloomberg estimate was 6.9%)
Net profit of Rs 20.9 crore versus loss of Rs 5.7 crore (Bloomberg estimate was Rs 3.5 crore)
Segmental Performance
The company's consumer and electronics division almost doubled in revenue terms compared to last financial year, while operating Ebitda tripled for these divisions.
Air conditioners still contribute the majority of revenue to the company's consumer division. It witnessed a stellar performance. In the first quarter of the current financial year, the consumer division's revenues had expanded by 44% due to heatwaves, as a result of which there was higher demand for cooling products.
The non-AC business consists of new segments like refrigerators, washing machines, microwaves, etc. Amber has also undergone backward integration for components of air conditioners, and while it is still adding more components, its margins suggest some cost measures due to this.
The electronics business consists of a product portfolio for printed circuit board assembly and PCB. These products cater to consumer durables, energy, automobiles, defence and aerospace, IT and telecom, smart watches, etc.
The company has been showing strength in this division and has raised its full-year guidance to 45% from 35% earlier for FY25.
The railway division has been in slow lane during both Q1 and Q2, due to low ordering of Vande Bharat trains. Apart from air conditioning, the company also plans to manufacture pantry, microprocessor, controller, gangways, doors, driving gears, etc. for these trains. The company's current order book for this division is over Rs 2,000 crore.
