A prolonged summer this year has meant strong growth for refrigeration and air conditioning player Amber Enterprises, reflecting in the September quarter earnings, which has powered the share prices to record levels, rising by 14% in trade on October 23.
During the concall with analysts, Amber Enterprises management called this year to be the best so far for India's AC industry, with the segment promising to grow by 3-3.5x over the next five years. Amber Enterprises said the RAC industry should clock a 30% sales growth compared to last year, reaching a sale of 1.30 crore AC units this year, as compared to 95 lakh to a crore. Amber said it confident of growing faster than the industry average, and both the third as well as fourth quarter too will be better for the company compared to a year ago, Amber said.
The company saw a two-fold growth in the RAC segment, owing to a prolonged summer and lower inventories. The company claims to have built a stronger order book of Light Commercial ACs, and also diversified into what it calls more 'margin accretive' segments, as it focuses on increasing the localisation potential.
Read More: Amber Enterprises: Momentum building up on multiple fronts
Amber said the bare printed circuit board (PCB) segment is expected to grow to Rs 80,000 crore market by FY30, from present Rs 32,000 crore levels at a 11-12% CAGR. This market, Amber said is 85% catered via imports, offering a big delta for Indian players.
Amber Enterprises reported a consolidated revenue from operations at Rs 1684.70 crore, a growth of 82% on year, and a net profit of Rs 20.96 crore compared to a net loss a year ago. The topline growth was largely driven by growth in the consumer durables business. A quarterly operating EBITDA of Rs 120 crore was recorded as against Rs 65 crore a year ago, a growth of 85%.
The September quarter revenue in the electronics division has risen by 98% on year to Rs 492 crore, helped by orders from the defense segment, and an anti-dumping duty on Chinese PCBs. Amber has guided for revenue growth of more than 45% in the EMS space for the year.
This quarter, work has begun on a new plant in Tamil Nadu to ramp up capacity, along with a JV with a South Korean company to make PCBs. The Korean JV also has a buyback component, where in the JV partner will be purchasing a percentage of the output for the first two years.
Amber's SIDWAL greenfield facility in the mobility division is expected to commence operations by Q1FY26, the management has said.
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