Shares of Amber Enterprises India surged nearly 20% on Wednesday, October 23, hitting a record high of ₹6,815.85 per share after the company’s quarterly results exceeded market expectations.
For Q2 of FY25, the company reported a significant 82% year-over-year (YoY) increase in revenue, reaching ₹1,685 crore. This was driven by strong consumer demand due to longer summer seasons and lower inventories in the market. Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also grew by 85% YoY, highlighting the company’s focus on the RAC (room air conditioner) segment, components, and its Electronics Division.
On the profit side, Amber posted ₹19.24 crore in net profit, a big improvement compared to the ₹6.94 crore loss it reported during the same period last year.
Strong Growth Across Divisions
Amber Enterprises showed strong growth in various parts of its business. The Consumer Durables division, which includes air conditioners and related components, saw a 95% YoY revenue increase. This growth was driven by the strong performance of both RAC and non-RAC components. The Electronics division grew by 98% YoY, thanks to new business opportunities and an advanced printed circuit board (PCB) manufacturing joint venture with Korea Circuit.
However, the Railway Subsystem & Mobility division experienced a slight 6% revenue decline due to slower material demand from Indian Railways.
Amber also continues to expand its product range in the Consumer Durables segment, adding new products like Tower Air Conditioners, Window Top Throw Inverter Series, Tropical High Efficiency Split Air Conditioners, and Cassette Air Conditioners. The Consumer Durables division’s revenue grew by 95% YoY, thanks to strong demand for RAC and non-RAC products.
During the quarter, Amber announced that it successfully upgraded a major multinational customer from using gas charging services to full Original Design Manufacturing (ODM) solutions. Additionally, it added a new client for its Tower AC segment.
Expansion in Electronics and Railways
In the Electronics division, Amber is diversifying into new business areas through PCB manufacturing and other advanced electronics applications. The expansion of Ascent Circuit’s new plant and its joint venture with Korea Circuit are opening new growth opportunities.
Amber’s solid order book and new product developments in railway subsystems and defense sectors provide a long-term growth outlook.
Stock Performance: Up 103% YTD
The stock has gained over 103% year-to-date (YTD), marking its strongest annual performance since 2020. Since hitting a low of ₹621 per share in 2019, the stock has surged by 940% to date. It began a steady rally in April 2023 and has continued to rise, showing an impressive 250% gain since then.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
