Amber Enterprises Shares hit Fresh High After Q2 Results, Up 150 per cent from 52-week low
The company’s profit after tax came in at Rs 19.24 crore, a stark reversal from a Rs 6.94 crore loss in the same period last year, signalling a robust turnaround in profitability.
Shares of Amber Enterprises India surged by 20 per cent on Wednesday, October 23, reaching an all-time high of Rs 6,815.85 after the company’s Q2FY25 results outperformed market expectations. The stock's remarkable rally has driven its year-to-date (YTD) gains to 103 per cent, making it one of the best-performing stocks of 2024.
Q2FY25 Financial Performance
Amber Enterprises reported an impressive 82 per cent year-over-year (YoY) jump in consolidated revenue, which climbed to Rs 1,685 crore, fueled by strong consumer demand during extended summer seasons and lower inventory levels across channels. Operating EBITDA also rose by 85 per cent YoY, reflecting the company’s strategic emphasis on Room Air Conditioner (RAC) components and its growing electronics division.
The company’s profit after tax came in at Rs 19.24 crore, a stark reversal from a Rs 6.94 crore loss in the same period last year, signalling a robust turnaround in profitability.
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Key Business Segment Performances
Amber’s Consumer Durables division led the way, recording a 95 per cent YoY revenue increase, driven by strong demand for both RAC and non-RAC components. The Electronics division witnessed a 98 per cent YoY growth, bolstered by new business applications and advanced PCB manufacturing through its joint venture with Korea Circuit.
On the downside, the Railway Subsystem & Mobility division saw a 6 per cent decline in revenue due to slower material procurement by Indian Railways. However, the company’s diversified product portfolio and strategic expansions in various segments, including Tower Air Conditioners and advanced circuit manufacturing, provide a strong growth outlook.
Outlook and Growth Initiatives
Amber Enterprises continues to innovate and expand, adding several new products in the consumer durables segment. The company also converted a major multinational customer to a full ODM solution and onboarded a new client for its Tower AC segment. In the electronics space, its joint venture with Korea Circuit and ongoing expansion of PCBA manufacturing are expected to drive future growth.
Stock Performance
Boosted by its stellar Quarterly Results, Amber Enterprises has delivered over 103 per cent gains YTD, marking its strongest annual performance since CY20. From its 52-week low of Rs 2,721.05 per share, the stock has surged by 150 per cent, reflecting strong investor confidence in the company’s growth trajectory.
Disclaimer: The article is for informational purposes only and not investment advice.