Amber Enterprises Stock Falls Most In A Month After Q2 Results
Amber Enterprises revenue dropped 35% year-on-year to Rs 407.9 crore in the July-September period.
Shares of Amber Enterprises India Pvt. fell the most in nearly a month as a slower-than-expected recovery in demand for discretionary items hurt profit and revenue for the heating and ventilation equipment maker in the first full quarter of operations after India eased the lockdown curbs.
The company’s revenue dropped 35% year-on-year to Rs 407.9 crore in the July-September period, according to an exchange filing, as demand in the room air conditioner fell segment fell. That compares with the Rs 494.5-crore consensus estimate of analysts tracked by Bloomberg.
Net profit tumbled 77% over the year-earlier to Rs 2.8 crore. Analysts, however, had pegged a net loss of Rs 4.72 crore.
Other highlights (year-on-year)
- Operating profit, or earnings before interest, tax, depreciation and amortisation, fell 41% to Rs 21.6 crore
- Ebitda margin contracted 60 basis points to 5.3%
Management Commentary
- Components and mobility application business contributed 64% during the quarter compared to 50% a year ago
- Outlook for mobile application business remains optimistic due to new order wins and strengthening of the order book
- Optimistic on growth from components business with the addition of new customers and demand from newer geographies
Analysts, too, remain bullish on Amber Enterprises. Of the 19 analysts tracking the stock, 11 have a ‘buy’ rating, five recommend a ‘hold’ and the rest suggest a ‘sell’. The stock is trading 5.4% higher than the Bloomberg consensus 12-month price target of Rs 2,063.4 apiece.
Shares ended 5.8% lower at Rs 2,186.6. The stock has snapped a two-day gaining streak.