During Tuesday’s trading session, the shares of this leading room air conditioner manufacturer surged 1.4 percent to Rs. 5,217.2 on BSE, after the company announced a joint venture (JV) with Korea Circuit for manufacturing Printed Circuit Boards (PCBs) in India.
With a market cap of Rs. 17,512.8 crores, the shares of Amber Enterprises India Limited closed in the green at Rs. 5,179.25, up by nearly 0.7 percent, compared to its previous closing price of Rs. 5,143.7.
What’s the news:
The Amber Group and Korea Circuit announced a Joint Venture (JV) to manufacture Printed Circuit Boards (PCBs) in India. This partnership aims to advance high-tech manufacturing of HDI, Flex, and Semiconductor substrates PCBs.
According to the latest filings with the stock exchanges, this collaboration aims to bring world-class technology and manufacturing excellence to India while addressing the rapidly growing domestic demand for electronics.
The Amber Group, through its subsidiary IL JIN Electronics, will hold 70 percent of the JV, while Korea Circuit will hold 30 percent in this JV.
In line with the Government of India’s ‘Aatmanirbhar Bharat’ vision, this JV enhances the domestic value addition of the industry and capabilities for import substitution.
Moving forward, the partners plan to scout for land to co-develop a state-of-the-art facility, while they await the finalization of the Government’s plan for the Electronics Components Manufacturing Scheme.
About Korea Circuit:
Korea Circuit is a leader in the Korean PCB industry, with 45 years of experience in producing PCBs.
Using advanced technology, the company has developed various PCB solutions, including HDI, Flex, Semiconductor substrates, multilayer, double-sided, and single-sided PCBs.
These products are used in many fields, such as mobile devices, IT, semiconductors, home appliances, consumer electronics, aerospace and defence, medical applications, energy solutions, automotive, telecom, and
data centres.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 41 percent from Rs. 1,702 crores in Q1 FY24 to Rs. 2,401 crores in Q1 FY25, due to strong demand for room air conditioners (RAC) owing to the favorable summer season.
Similarly, its net profit increased during the same period from Rs. 47 crores to Rs. 75 crores, indicating a rise of nearly 60.3 percent YoY.
On a year-on-year basis, the operating EBITDA increased from Rs. 138 crores in Q1 FY24 to Rs. 200 crores in Q1 FY25, registering a growth of 45 percent YoY.
Further, the increase in operating EBITDA margins from 8.1 percent to 8.3 percent is reflective of the company’s blend of strategy for finished goods and components.
About the company:
Incorporated in 1956, Amber Enterprises India Limited is principally engaged in the business of manufacturing and trading of consumer durables, electronics manufacturing services (EMS) and railway subsystem & mobility and its services.
Written by Shivani Singh
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