The household appliances industry in India is projected to reach USD 75 billion in revenue by 2023, with expectations of a 5.5% CAGR from 2024 to 2029. With over 1.3 billion people, urbanization and rising disposable incomes are driving demand for innovative and smart appliances, transforming daily life across the country.
With a market capitalization of Rs 20,669.24 crore, the shares of Amber Enterprises India Ltd closed at Rs 6,121.95 per share, decreasing around 2 percent as compared to the previous closing price of Rs 6,249.55 apiece.
Financial condition:-
On Wednesday, the company announced its financial performance, revenue zoomed by 81 percent on year on year basis from Rs 927 crore in Q2FY24 to Rs 1,685 crore in Q2FY25, however in Quarter a Quarter basis revenue decreased by 30 percent from Rs 2,401 crore in Q1FY25 to Rs 1,685 crore Q2Y25.
Moreover, net profit is magnified by 450 percent on a yearly basis from Rs 6 crore loss in Q2FY24 to Rs 21 crore profit in Q2FY25, meanwhile on a quarter-on-quarter basis net profit soard multifold times by 72 percent from Rs 75 crore in Q1FY25 to Rs 21 crore in Q2FY25.
Management Guidance:-
Amber Enterprises management stated that this year went well so far for India’s air conditioning business, with the category expected to increase by 3-3.5 times over the following five years. According to Amber Enterprises, the RAC sector is expected to increase by 30% this year, selling 1.30 crore AC units, up from 95 lakh.
Furthermore, the company is confident of growing faster than the industry average, and both the third, as well as fourth quarters, too will be better for the company compared to a year ago. The company saw a two-fold growth in the RAC segment, owing to a prolonged summer and lower inventories.
Additionally, the business claims to have created a stronger order book of Light Commercial ACs and expanded into what it deems more margin accretive’ areas, with an emphasis on enhancing localization possibilities.
Amber’s bare printed circuit board (PCB) segment is expected to grow to Rs 80,000 crore market by FY30, from the present Rs 32,000 crore levels at an 11-12% CAGR.
In this quarter, the company began construction on a new factory in Tamil Nadu to increase capacity, as well as a joint venture with a South Korean company to manufacture PCBs. The Korean JV also includes a repurchase component, in which the JV partner will purchase a portion of output for the first two years.
Company profile:-
Amber Enterprises India Limited is engaged in the manufacturing of consumer durable products. The Company is a solution provider for the air conditioner original equipment manufacturer (OEM) /original design manufacturer (ODM) industry in India.
Written by:- Abhishek Singh
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