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Amber Enterprises slumps after Q4 PAT drops 24% to Rs 57 cr

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Capital Market
Last Updated : May 16 2022 | 12:16 PM IST

Amber Enterprises India tumbled 19.44% to Rs 2719.95 after the company reported 24.2% decline in consolidated net profit to Rs 57.22 crore in Q4 FY22 as against Rs 75.46 crore in Q4 FY21.

Net sales stood at Rs 1,936.69 crore for the quarter ended 31 March 2022 as against Rs 1,598.43 crore during the same period in the previous year, registering a growth of 21.2%.

Profit before tax stood at Rs 85.86 crore in the fourth quarter, down by 26.3% from Rs 116.45 crore during the period under review. The company reported a 24.3% increase in total expenditure to Rs 1,811.41 crore in Q4 FY22 over Q4 FY21.

Operating EBITDA decreased 10% to Rs 133 crore in Q4 FY22 compared with Rs 147 crore in Q4 FY21. Operating EBIDTA margin stood at 6.9% in Q4 FY22 as against 9.2% in Q4 FY21.

On full year basis, the company reported a 33.8% increase in net profit to Rs 109.19 crore on a 38.8% rise in net sales to Rs 4,206.40 crore in FY22 over FY21.

The company said that for FY22 RAC (room air-conditioner) sales contributed 47% of total revenue while components & mobility application contributed 53% of total revenue.

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Commenting on the results and performance for Q4 & FY22, Jasbir Singh, the chairman & CEO of Amber Enterprises India said, "I'm pleased to report that the company has generated record sales of Rs. 1,937 Crs in Q4FY22 and achieved highest ever revenue of Rs. 4,206 crore for FY22. After two consecutive years of COVID-19-induced lockdowns during the peak summer season, we're witnessing an increase in demand for room air conditioners. However, the geopolitical tensions have led to inflationary pressure on commodity prices and the covid induced lockdowns in China has led to supply chain disruptions which has further added to the pain of the economy. Despite this, we have been able to pass on majority of price increases and have been largely able to maintain our profitability."

"With the acquisition of a majority ownership in Pravartaka Tooling Services Private Limited, we are all set to provide more diversified solution of Injection molding tools and components for industries such as automotive, electronics & consumer durable. We are providing very comprehensive and integrated solutions in both components space and finished goods. Our revenue contribution from components and mobiliy applications has increased from 24% in FY18 to 53% in FY22."

"Strong pent-up demand, coupled with the arrival of early summer and an overall increase in consumer sentiment across the country, will continue to drive revenue growth. At Amber, all the business divisions are ready to take advantage of multiple opportunities. Our goal is to capture the bulk of RAC and component market share. We believe the available opportunities will boost our position in domestic market while also providing a solid foundation for exports market going forward."

Amber Enterprises India is a market leader in Indian Room Air Conditioner (RAC) industry and Air Conditioning industry for mobility application such as railways, metros, buses etc. The company has diversified portfolio which includes RACs, RAC Components and Air conditioning solutions for railways, metro's, defence, bus & commercial segment.

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First Published: May 16 2022 | 11:13 AM IST

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