Amber Enterprises trades 3% lower on muted Q1 earnings

Shares of Amber Enterprises India Ltd fell more than 3% to Rs 2,196.4 at 9:31 a.m. on July 26 after the company posted a series of weak results for the quarter ended June amid high demand. demand slows down.
The company reported a 7% drop in operating revenue to Rs 1,702 billion in June 2023 from Rs 1,826 billion a year ago, although the company’s quarterly net profit rose 9% to Rs 47 billion compared to Rs. with 43 billion Rupees. Operating profit before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 138 billion in June 2023, up 6% from Rs 131 billion last year.
The company’s RAC & Components division saw some margin improvement during the quarter, despite unusual weather conditions, thanks to a components strategy that led to a change in product line.
The performance situation in the first quarter has so far been unclear, with weak demand due to rain and unseasonal weather. Inventories on the channel are high and are expected to return to normal levels by the end of Q2FY24, according to regulatory filings. “The first quarter was, overall, a strong quarter for the RAC industry, marked by rain and unseasonal weather. As the industry saw demand decline, channel inventories were maintained at a high level. and is expected to return to normal by the end of Q2 FY24,” said Jasbir Singh, Executive Chairman and CEO and Full-time Director of Amber Enterprises India Ltd.
Singh added that they are committed to creating synergy through strategic partnerships and exploring new opportunities to expand their presence. They expect the mobility division to operate exponentially as the transportation infrastructure industry is poised for significant growth.