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• Revenue: INR1,665 crores for Q2 FY25, up by 82% year-over-year.

• Operating EBITDA: INR120 crores for Q2 FY25, a growth of 85% year-over-year.

• Profit After Tax (PAT): INR21 crores for Q2 FY25, compared to a loss of INR6 crores last year.

• Consumer Durables Division Revenue: INR1,069 crores for Q2 FY25, a growth of 95% year-over-year.

• Consumer Durables Division Operating EBITDA: INR62 crores for Q2 FY25, a growth of 196% year-over-year.

• Electronics Division Revenue: INR492 crores for Q2 FY25, a growth of 98% year-over-year.

• Electronics Division Operating EBITDA: INR37 crores for Q2 FY25, a growth of 187% year-over-year.

• Railway Subsystems and Defense Division Revenue: INR124 crores for Q2 FY25, a decline of 6% year-over-year.

• Net Working Capital Days: Reduced to 27 days from 52 days in H1 FY25.

• Net Debt: INR1,277 crores.

• CapEx Guidance: Expected to remain in the range of INR350 crores to INR375 crores, excluding Korea Circuit CapEx and Ascent turnover debt.

• Warning! GuruFocus has detected 6 Warning Signs with NSE:AMBER.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Amber Enterprises India Ltd (NSE:AMBER) reported a robust revenue growth of 82% year-over-year, reaching INR 1,685 crores.

• Operating EBITDA increased by 85%, demonstrating strong operational efficiency.

• The company successfully turned around its profitability, reporting a PAT of INR 21 crores compared to a loss of INR 6 crores in the previous year.

• The consumer durables division saw a significant growth of 95%, driven by strong demand for room air conditioners and components.

• The electronics division almost doubled its revenue to INR 492 crores, showcasing a growth of 98.22%.

Negative Points

• The railway subsystems and defense division experienced a decline of 6% in revenue due to project delays and shifts in government priorities.

• Gross margins declined by 200 basis points, attributed to a higher proportion of finished goods sales.

• The company faces challenges in predicting future demand due to the seasonal nature of its products, particularly air conditioners.

• There is an increase in net debt levels, expected to reach INR 700-800 crores by year-end, due to investments and CapEx.

• The company remains cautious about providing aggressive future growth guidance, reflecting uncertainty in market conditions.

Q & A Highlights

Q: How is the demand for air conditioners (AC) during the festive season, and what is Amber's growth outlook for FY25? A: Jasbir Singh, Executive Chairman and CEO, stated that the AC industry experienced significant growth due to climatic conditions, with expectations of a 25% to 30% industry growth. Amber is growing faster than the industry due to new customer additions and product initiatives, expecting to maintain this trend for the next few quarters.