Amber Enterprises’ shares soared 14% on October 23, driven by strong Q2 results and optimistic projections for India’s air conditioning market. The prolonged summer in 2024 has significantly boosted demand, resulting in a consolidated revenue growth of 82% year-on-year to Rs 1,684.70 crore and a net profit of Rs 20.96 crore. The company’s performance was further bolstered by a two-fold increase in the Residential Air Conditioner (RAC) segment due to low inventories and extended summer weather. This demand surge has set the stage for what Amber’s management describes as the best year yet for India’s AC industry.
The company expects the RAC industry to grow 30 per cent this year to sales of 1.30 crore units, up from 95 lakh to a crore units sold last year. Amber plans to outperform the growth on the back of its strengthened order book and entry into high-margin segments like Light Commercial ACs. Amber is also working at increasing localization efforts in the PCB market, which by FY30 is expected to reach Rs 80,000 crore, a market 85% dependent on imports and thereby providing ample opportunities for domestic players such as Amber.
Management at Amber, though, remains equally bullish about future growth in other segments: “The electronics business has reported a 98 percent year-on-year increase in revenues to Rs 492 crore. The growth has been further bolstered by orders from the defense sector and anti-dumping duties on Chinese PCBs. The company has also begun work on a new plant in Tamil Nadu to expand capacity and has entered a joint venture agreement with a South Korean company to manufacture PCBs, with a buyback agreement in place for two years.
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Source: Moneycontrol
News Desk
