The shares of this smallcap consumer durables stock engaged in manufacturing heating and ventilation equipment jumped 7 percent on Friday after the announcement of its Q3 results with a 64 percent rise in revenue year on year.
Price Action
With a market capitalization of Rs 23,625.72 crore, Amber Enterprises India Ltd rose 7 percent in Friday’s trading session and made a high of Rs 7,248 per share compared to its previous closing price of Rs 6,767.60 per share. The stock reiterated from its day’s high and was trading at Rs 6.991 which is 3.30 percent higher than the previous closing price.
What Happened
Amber Enterprises India Ltd stock surged after the company reported its Q3FY24-25 results. Its revenue from operations grew by 64.8 percent year on year from Rs 1,294.8 crore to Rs 2,133.3 crore in Q3FY25 and it grew by 26.6 percent QoQ from Rs 1,685 crore in Q2FY25.
The company’s net profit stood at Rs 37 crore in Q3FY25 compared to a loss of Rs 0.51 crore in Q3FY24. On a quarter-on-quarter basis, the net profit rose by 76.73 percent from Rs. 21 crores.
Company Overview & Expansion Plans
Amber Enterprises India Ltd is a solutions provider for the air conditioner OEM/ODM industry in India. They hold around 23.6 percent share of the total Room Air Conditioner market. The company has invested Rs. 650 crore to establish a new facility at Hosur which is expected to be commercialized by Q4FY26.
The company has 3 major divisions namely Consumer Durables, Electronics, and Railway Sub-Systems & Defense division. Amber Enterprises has an order book of over Rs. 2,000 crores in the Railway Sub-Systems & Defense division alone. Based on the current order book, the Electronic Division revenue growth guidance revised to more than 55 percent by the company.
Management Commentary
Jasbir Singh, the Executive Chairman & CEO and Whole time Director of Amber Enterprises India said “The Consumer Durable division reported strong growth of 67% YoY, led by the
underlying RAC industry channel inventory filling in anticipation of a positive summer season, and aided by the deepening of the customer relationships.
The Electronic division continues to be on transformative growth momentum with revenue growth of 96% YoY in Q3FY25. The growth levers are in place for further rapid scale-up with the addition of business applications on PCB Assembly front, and on the Bare board front, the Ascent facility expansion coupled with JV with Korea Circuit for HDI, Flex and Semiconductor substrates PCB will pave the way for growth.
The Railway Sub-systems & Defense division revenue witnessed a 13% decline on a YoY basis in Q3FY25, impacted by deferral in offtake of products. However, the delay in Indian Railways offtake is more momentary and with no cancellations of order.””
Segment Revenue
In the Consumer Durables division, the revenue grew 94 percent year on year from Rs 946 crore in Q3FY24 to Rs 1,884 crore in Q3FY25. This was accompanied by a 161.72 percent year-on-year growth in profits before interest and tax (PBIT) from Rs 42.6 crore in Q3FY24 to Rs 111.7 crore in Q3FY25.
In the Electronics division, the revenue grew 138 percent year on year from Rs 241 crore in Q3FY24 to Rs 574 crore in Q3FY25. This was accompanied by a 224 percent year-on-year growth in profits before interest and tax (PBIT) from Rs 10.8 crore in Q3FY24 to Rs 35 crore in Q3FY25.
In the Railway Sub-Systems & Defense division, the revenue decreased by 12.4 percent year on year from Rs 121 crore in Q3FY24 to Rs 106 crore in Q3FY25. This was accompanied by a 47.8 percent year-on-year fall in profits before interest and tax (PBIT) from Rs 23 crore in Q3FY24 to Rs 12 crore in Q3FY25.
Written by Shwetha Sairam
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