Shares of Amber Enterprises, a consumer durable firm, extended their gains for the second consecutive trading session on Wednesday's trade after the company's Q4FY23 numbers cheered investors.
The company on Tuesday reported a strong 83% jump in its consolidated net profit to ₹108 crore in Q4FY23 from ₹59 crore in the corresponding quarter of last fiscal. In the preceding December quarter, the company posted a consolidated net profit of ₹15 crore.
It reported its highest-ever quarterly revenue of ₹3,003 crore in Q4, an increase of nearly 55% YoY from ₹1,937 crore in Q4FY22. Its RAC components division, which contributes more than 79% of the company's revenues, grew by 55% YoY to ₹2,371 crore, while its electronic division recorded a revenue growth of 69% and its mobility division registered a 37% growth in Q4FY23.
Overall, all the divisions contributed healthily to the top line and bottom line, leading to an improvement in the profitability ratios, the company said in an exchange filing.
For the fiscal year ended March 31, 2023, the company's consolidated net profit stood at ₹164 crore, an increase of 47.74% as compared to ₹111 crore in FY22. Revenue from operations for FY23 came in at ₹6,927 crore as compared to ₹4,206 crore in FY22.
In response to the strong Q4 performance, the company's shares opened strongly in today's session at Rs. 2,170 each against the previous closing price of ₹1,882.20 apiece and rose further to reach a seven-month high of Rs. 2,222, up 18%.
Commenting on the results and performance for Q4FY23, Mr Jasbir Singh, Chairman & CEO of Amber Enterprises India Ltd., said, " While Room Air Conditioner remains our focus segment, our other four divisions (Electronics, Motors, Mobility, and Components) within the group are witnessing a rampant growth, ultimately strengthening the top line and bottom line."
"We are focused on prudent asset allocation for a better return on investment while balancing growth and profitability and improving return ratios," he added.
Going forward, the company anticipates that its RAC and Components division will surpass the industry growth rate in the fiscal year 2024. Additionally, it projects a growth rate of 15%–20% for the Mobility Application division, 35%–40% for the Electronics division, and 30%–35% for the Motors division in FY24.
Furthermore, the company is focused on strengthening its balance sheet over the next 2–3 years. With an aim to improve return on capital employed (ROCE), the company is confident in achieving a substantial increase, targeting a range of 19%–21%.
Amber Enterprises is a small-cap firm and a one-stop solution provider for major brands (OEMs) in the room air conditioners (RAC) industry. It is a leader in the RAC outsourced manufacturing space. The company has a diversified portfolio that includes RAC, RAC components, and non-AC components.
The company shares made their debut on the Indian stock exchanges on January 30, 2018, at a premium of 36.78% at ₹1,175 apiece over the IPO price of ₹859 and closed the first day at ₹1,237, a 44% premium over the issue price.
However, in the last one-year period, the stock underperformed the market, losing nearly 23% of its value, and in the last two years, it plummeted by 30%.
19 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.